Assessing the Endogeneity of Oca Conditions in Emu*

Vieira, Carlos; Vieira, Isabel

doi:10.1111/j.1467-9957.2012.02321.x

Cited by 14 publications

(16 citation statements)

References 30 publications

(42 reference statements)

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Section: Brief Review Of Selected Oca Index Studiesmentioning

confidence: 99%

“…Significant methodological changes can be observed in Skořepa (2011Skořepa ( , 2013 or in Vieira and Vieira (2010). In Vieira and Vieira (2010) is the volatility of nominal exchange rate estimated using the panel data, instead of cross-sectional data. The results of their analysis provide the same results as the generally accepted methodological approach defined in Bayoumi and Eichengreen (1997).…”

Section: Brief Review Of Selected Oca Index Studiesmentioning

confidence: 99%

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OCA Indexes and Convergence Process in Europe

Frydrych¹,

Burian²

2017

Scientific Annals of Economics and Business

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This paper evaluates the European monetary convergence for period 2001 and 2013. The main purpose of this contribution is the estimation of the so-called OCA index, which indicates the proximity of two economic areas. The paper is theoretically based mainly on the research of Bayoumi andEichengreen (1997), andHorváth andKomárek (2003). Selection and calculation of variables precedes the econometric analysis, and those variables correspond to the basic characteristics of an optimum currency area. Although the estimated model fulfills the conditions of economic and econometric verifications, its explanatory capabilities are significantly reduced due to the limited set of input data. Results of the analysis point to relatively stable values of indices in the period, but their further examination of the development in time reveals a steady deterioration in the case of almost all economies. That means that the convergence process was not proven because a decrease in OCA indexes values over the time was not observed. According to the results of comparison, methodological approach of the OCA indexes cannot be considered reliable because minor differences in calculation give different outputs.

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Section: Brief Review Of Selected Oca Index Studiesmentioning

confidence: 99%

Section: Brief Review Of Selected Oca Index Studiesmentioning

confidence: 99%

OCA Indexes and Convergence Process in Europe

Frydrych¹,

Burian²

2017

Scientific Annals of Economics and Business

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“…The answer given by Frankel and Rose (1997) was positive in their ex ante analysis; they argued that the EMU would be more justifiable in the ex post sense. However, more recently, Vieira and Vieira (2012) in an ex post analysis of the EMU's first decade in existence (including the initial group of eleven countries as members of the EMU plus Greece) conclude that the hypothesis does not hold for some countries. Utilising the OCA index, first proposed by Bayoumi and Eichengreen (1997), and comparing individual countries' compliance with selected OCA conditions before and after the adoption of the euro, they conclude that 'The distance separating peripheral and core economies before the introduction of the euro remains practically unchanged after 10 years of adopting the common currency' (p. 78).…”

Section: Optimal Currency Area Considerationsmentioning

confidence: 99%

Economic and Monetary Union Macroeconomic Policies

Arestis

Sawyer

2013

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Section: Optimal Currency Area Considerationsmentioning

confidence: 99%

Alternative Economic Policies for the Economic and Monetary Union

Sawyer

2013

Contributions to Political Economy

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The problems of the euroarea stem from design faults of the EMU with current account imbalances, differential inflation, and a poor macroeconomic framework, and failures to accommodate differences in institutions between the member countries. The design of the 'independent' European Central Bank has largely precluded the necessary co-ordination of fiscal and monetary policy, and has also disabled the central banking system from providing sufficient support to national governments and their budget deficits. Little regard was paid to issues such as convergence of business cycles and economic conditions between potential member countries (with its implications for the operation of a 'one size fits all' monetary policy). No attention appears to have been paid to the institutional differences between member countries with respect to how labour markets, housing markets, banking system etc functioned and operated. The paper outlines a set of alternative policy proposals for the Economic and Monetary Union. These proposals are very far removed from the present policy positions, and remote from what could be viewed as politically feasible. The proposals would require significant income transfers between countries through the development of a Federal tax system and social security system. The policy framework seeks to specifically address the malfunctioning of the Economic and Monetary Union, and as such do not address the relationship between EMU member countries and the other member countries of the EU. The proposals are put forward to illustrate a different direction of travel. Journal of Economic Literature classification codes: E60, E61

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Assessing the Endogeneity of Oca Conditions in Emu*

Cited by 14 publications

References 30 publications

OCA Indexes and Convergence Process in Europe

OCA Indexes and Convergence Process in Europe

Economic and Monetary Union Macroeconomic Policies

Alternative Economic Policies for the Economic and Monetary Union

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