CEU Electronic Theses and Dissertations, 2012
| Author | Vojtkova, Maria |
|---|---|
| Title | Eurozone as Common Currency Area: Optimal Currency Basket Perspective |
| Summary | The study aims at contribution to the literature of the theory of optimal currency basket and optimal currency area. We derive analytical solution of the model of Zhang et al. (2011) and use it to compute structure of individual optimal currency baskets for 5 European countries – Spain, Italy, France, Germany and Portugal for year 1994. Based on the empirical results we conclude that creation of common currency union in the late nineties was justified from the perspective of the optimal currency basket approach. Moreover, signs of presence of possible synchronization in external sector against shocks to the exchange rate create room for efficient use of common monetary policy. |
| Supervisor | Campolmi, Alessia |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2012/vojtkova_maria.pdf |
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