Working Paper
Monetary Policy as an Optimum Currency Area Criterion
Authors
Publication Date
JEL Classification
F33
F41
E52
Key Words
Related Topics
Monetary Policy
European Union & Euro
Business Cycle
Whether countries benefit from forming a monetary union depends critically on the way monetary policy is conducted. This is mainly because monetary policy determines whether and to what extent a flexible nominal exchange rate fosters or hampers macroeconomic stabilization, even if monetary policy does not target the nominal exchange rate explicitly.
