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European Monetary Union: Optimum Currency Area Index
Gouri Boyinová, Sumudu Namali ; Maitah, Mansoor (advisor) ; Anna, Anna (referee)
This goal of this diploma thesis is to compare and evaluate Euro area member states using the optimum currency area index (OCA index). Optimum currency area (OCA) theory serves as a guideline when analysing the selected Euro area countries. The thesis attempts to calculate the OCA index and the alternative OCA calculation (CNB) for Austria, Belgium, Cyprus, Germany, Estonia, Spain, Finland, France, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia, and Slovakia. The results indicate that the traditional OCA index to a certain extent explains exchange rate variability. It concludes that the design of the OCA index is not considered adequate for the current economic environment, and we do not consider it an appropriate benchmark (in its original form) to determine if the country is suitable to become a member of the monetary union.
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