In summary,
optimum currency area theory suggested two big things to look at — labor mobility and fiscal integration.
In conclusion, I believe that global capital flows will continue to favor the relative safety, depth and the breadth of the vast
dollar currency area.
The Eurozone, even at its infancy, has never constituted an
Optimal Currency Area, but at a time of relative economic growth the Stability and Growth Pact (SGP) was by most considered as a sufficient tool to secure the sustainability of the single currency.
It is predictable, therefore, that rUK will insist that if it admits Scotland to a
common currency area, Scotland will have to agree to harsh rules capping its maximum public debt and deficit.
The latest figure signalled the largest monthly fall in retail sales across the single
currency area since the depths of the global financial crisis in November 2008 (40.6).
Official data now show the single
currency area growing 0.6 % in the first quarter, up from a prior estimate of 0.5 %.
In September, the rate of unemployment in the single -
currency area dipped below 9 %, a level not seen since 2009, but the initial estimate of inflation for October was weaker than widely expected.
Currency of course fluctuates at the best of times but the steep 12 per cent fall means holidays in the single -
currency area means holidays will be drastically more expensive.
It's important to remember that while China is a huge economy with a great deal of variety across different regions, it can nonetheless operate effectively with a single currency because it has most of the characteristics of an
optimum currency area.
The «
optimal currency area» argument should have some traction; but so too will arguments which conclude that the near - collapse of the Eurozone from 2009 onwards occurred, among other reasons, because some Eurozone members were fiscally undisciplined.
The economy of both the 19 - nation
single currency area and the 28 - nation European Union (EU) grew by 0.4 percent in the first quarter of 2018.
Point 3 seems to state that the central bank of a
common currency area could work more efficient and be more credible when it is independent, compared to national central banks which may be controlled by the government.
BRUSSELS, Oct 23 - European Union countries will examine a plan this week to allow the ECB to supervise banks in states outside the euro zone alongside those within
the currency area, according to an EU document that lays down limits on the central bank's role.
After the Greek «No» vote, gloomy officials in Brussels and Berlin said a Greek exit from
the currency area now looked ever more likely.
Record - low yields obtained from QE are suspected to have an impact on the solvency of pension funds and life insurers, potentially undermining demand in
the currency area and thus provoking a counter-productive effect on growth and inflation.
New Europe's debt strains are threatening to break up the core euro -
currency area (aggravated from within by the Greek, Spanish and Irish public debt problems).
The cause of this instability is that each of these three
currency areas has grown top - heavy with by debts in excess of the ability to pay.
The European Commission Wednesday said its economic sentiment indicator for
the currency area fell to 90.6 from 92.9 in April.
-LRB-...) their bets against the bonds of «core» eurozone countries — not just France, but Germany and the Netherlands too — represent a new, deeper level of bearishness on the single
currency area's prospects.
Businesses in the 17 countries that use the euro became much more gloomy about their prospects in May as
the currency area's fiscal crisis deepened.
That said, the latest figure still signalled a marked monthly fall in retail sales across the single
currency area.
This criticism is linked to the so - called «optimum
currency area» analysis, which holds that to share a single currency, two or more economies should have «harmonized» business cycles so that a single monetary policy (interest rate) fits them all.
The pickup was spread across
the currency area, with sales up 1.5 % in low - unemployment Germany, but up an even stronger 2.1 % in France, where the unemployment rate is much higher and the economy weaker.
Merkel adopts Macron's call for eurozone finance minister German chancellor Angela Merkel has joined French president Emmanuel Macron in calling for the creation of a eurozone finance minister in order to increase fiscal integration in the single -
currency area.
After years in the doldrums, increased business activity and slightly rising prices are good news for the single
currency area.
«If you have a single
currency area you come back to having an economic if not a political union [with Westminster].
It argues that that is in the interests of rUK as well as of Scotland, because the present UK is what economists label an optimum
currency area.
Currency areas are rarely born out of natural economic circumstances.
We believe these measures would (i) produce a major shift in the perception of unemployment as a problem of the single market rather than as a strictly national problem, (ii) improve labour markets within the Eurozone, (iii) improve labour mobility in
the currency area, particularly from «labour deficit countries» to «labour surplus countries».
But suppose, to take a not at all hypothetical example, that a vast housing boom leads to full employment and rising wages in part, but only part, of
a currency area, then goes bust.
It's not just that
a currency area is limited to a one - size - fits - all monetary policy; even more important is the loss of a mechanism for adjustment.
A boom or slump everywhere in
a currency area poses no special problems.
The Eurozone, even at its infancy, has never constituted an Optimal
Currency Area, but at a time of relative economic growth the Stability and Growth Pact (SGP) was by most considered as a sufficient tool to secure the sustainability of...
In economics, there is a general theory on when it is efficient for some region to have the same currency, the key word being Optimum
Currency Area.
Phrases with «currency area»