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Literature and Theory

In: Optimal Currency Areas and the Euro, Volume II

Author

Listed:
  • Johannes Kabderian Dreyer

    (Roskilde University RUC)

  • Peter Alfons Schmid

    (FOM University of Applied Sciences)

Abstract

This chapter analyzes different theories on how factor mobility can counteract both symmetric and asymmetric economic shocks in currency unions, as well as states the research questions of this pivot. Moreover, it gives the reader a summary of the literature on labor and capital mobility, highlighting their importance to the well-functioning of currency unions, where countries are not able to execute their own monetary policies by themselves. The chapter also discusses the possibility of endogenous development of the EA toward more factor mobility over time.

Suggested Citation

  • Johannes Kabderian Dreyer & Peter Alfons Schmid, 2023. "Literature and Theory," Springer Books, in: Optimal Currency Areas and the Euro, Volume II, chapter 0, pages 9-37, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-38867-5_2
    DOI: 10.1007/978-3-031-38867-5_2
    as

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