Optimum Currency Areas , Real and Nominal Convergence in the European Union

  title={Optimum Currency Areas , Real and Nominal Convergence in the European Union},
  author={Jo{\~a}o Miguel Gonçalves de Sousa Andrade and Ant{\'o}nio Duarte},
It is well known and widely accepted by economists that the characteristics of the European countries that become the Eurozone in 1999 did not match the requirements of an Optimum Currency Area (OCA). The only criteria for membership of the new area were nominal. A strict level of convergence in inflation and interest rates was imposed. In addition to the nominal convergence (monetary), a process of convergence of nominal incomes in the new monetary unit was expected to be generated with the… CONTINUE READING


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