Projects / Programmes
Theory of optimum currency areas and economic effects of inclusion in emu
| Code |
Science |
Field |
Subfield |
| 5.02.00 |
Social sciences |
Economics |
|
| Code |
Science |
Field |
| S180 |
Social sciences |
Economics, econometrics, economic theory, economic systems, economic policy |
currency area, monetary integration, ERM 2, EMU, euro area
Researchers (4)
| no. |
Code |
Name and surname |
Research area |
Role |
Period |
No. of publicationsNo. of publications |
| 1. |
13547 |
PhD Jože Damijan |
Economics |
Researcher |
2004 - 2007 |
2,315 |
| 2. |
03571 |
MSc Vladimir Lavrač |
Economics |
Researcher |
2004 - 2007 |
348 |
| 3. |
09110 |
PhD Boris Majcen |
Economics |
Head |
2004 - 2007 |
484 |
| 4. |
21498 |
MSc Sonja Uršič |
Economics |
Researcher |
2004 - 2007 |
107 |
Organisations (1)
| no. |
Code |
Research organisation |
City |
Registration number |
No. of publicationsNo. of publications |
| 1. |
0502 |
Institute for Economic Research |
Ljubljana |
5051690000 |
2,472 |
Abstract
The research project aims at contributing to new scientific insights in the field of OCA theory by trying to add a new argumentation, classification and interpretation of the OCA criteria, which should contribute to more consistency in the OCA theory. Important part of the research project is focused on the overview, critical evaluation and attempt at completing this theory. Scientific contribution can be expected also from the broadening of the theoretic framework and from adding dynamic component to the costs and benefits analysis of joining a monetary union. By including the time component not only the question whether the inclusion in a monetary union is economically justified or not can be answered, but the issue of the optimal speed of joining a monetary union, as well as joining transitory mechanisms of monetary integration such as ERM 2, can be addressed.
Research hypotheses:
1.OCA theory is inconsistent, non-dynamic and does not take into account transition specific economies of acceding countries.
2.Traditional approach to the analysis of costs and benefits of the adoption of the single currency, first, does not include dynamics of costs and benefits, second, does not take account of transitory periods (such as ERM 2) and, third, does not take into account effects of possible rivalry among individual accession countries.
3.Standard analysis of asymmetric shocks and alternative mechanisms of adjustment in a monetary union disregards specifics of transition economies and thus does not necessarily give the right advice regarding optimal economic policy mix before and after the inclusion in the EMU.
Objectives of the research:
1.Critical analysis of OCA theory and attempt at adjusting it from the viewpoint of transition specific economies of acceding countries. Goal: Assessment of suitability and readiness of acceding countries for joining the EMU.
2.Dynamising the standard approach to the analysis of costs and benefits of joining monetary integration by also taking into account transitory periods. Goal: Identification of optimal dynamics and of net economic effects of joining the ERM 2 and EMU.
3.Redefinition of the role of individual economic policies and of mechanisms of coordination of economic policies before and after the entry in the euro area. Goal: Identification of the optimal economic policies mix before and after the euro adoption.
Results of the research project can be used for:
-Formulation of the strategy of Slovenia in the area of monetary integration before entering the EMU.
-Formulation of the negotiating position of Slovenia vis a vis representatives of the EU (Commission, ECB) in the matters of monetary integration.
-Redefinition of the role of individual economic policies and formulation of the optimal economic policies mix and of necessary coordination of economic policies after the euro adoption.
