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Currency Areas and Equilibrium

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Abstract

The standard approach to optimum currency areas clashes with both modern monetary theory and empirical evidence. The present paper sets forth an equilibrium hypothesis that views the national border as the analogue of a policy measure impinging on agents' optimizing behavior.

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Authors and Affiliations

  1. Banca d'Italia, Italy

    Filippo Cesarano

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  1. Filippo Cesarano
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Cesarano, F. Currency Areas and Equilibrium. Open Economies Review 8, 51–59 (1997). https://doi.org/10.1023/A:1008237132665

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  • DOI: https://doi.org/10.1023/A:1008237132665

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