ME  Vol.2 No.3 , July 2011
The Eurozone 1999-2010 (Some Thoughts about the Long Term Dynamic Forces in the EMU)
Abstract: Detailed econometric analysis of the dynamics and variability of the 10 different economic variables is used to analyze the divergence-convergence processes in the Eurozone. These data, publicly available from the Eurostat and European Central Bank indicate that the current instability notwithstanding, in its first 11 years of existence the Eurozone was a reasonably cohesive political arrangement. However, significant cracks in its economic façade are clearly developing in the areas most important for the long run economic performances of individual countries – productivity and competitiveness. Unless addressed, these may constitute significant, and perhaps ultimate, threats to the Eurozone cohesion and perhaps to its existence.
Cite this paper: nullA. Rusek, "The Eurozone 1999-2010 (Some Thoughts about the Long Term Dynamic Forces in the EMU)," Modern Economy, Vol. 2 No. 3, 2011, pp. 390-394. doi: 10.4236/me.2011.23042.

[1]   T. Waigel, “Introductory Statement for the Panel Discussion on the Occasion of the Forum: 10 Years of the European Economic and Monetary Union,” 2008.

[2]   R. Mundell, “A Theory of Optimal Currency Areas,” American Economic Review, Vol. 51, No. 4, 1961, pp. 657-665.

[3]   P. B. Kenen, “The Theory of Optimum Currency Areas: An Eclectic View,” In: R. Mundell and A. Swoboda, Eds., Monetary Problems of the International Economy, Chicago University Press, Chicago, 1969, pp. 59-77.

[4]   G. S. Tavlas, “The ‘New,’ Theory of Optimum Currency Areas,” The World Economy, Vol. 16, No. 6, 1993, pp. 663-685.

[5]   T. Bayoumi and B. Eichengreen, “Shocking Aspects of European Monetary Unification,” In: F. Giavazzi and F. Torres, Eds., Transition to Economic and Monetary Union in Europe, Cambridge University Press, New York, 1993, pp. 193-229.

[6]   R. Mundell, “Uncommon Arguments for Common Currencies,” In: H. Johnson and A. Swoboda, Eds., The Economics of Common Currencies, Allen and Unwin, London, 1973, pp. 114-132.

[7]   J. A. Frankel and A. K. Rose, “The Endogeneity of the Optimum Currency Area Criteria,” 1996.

[8]   P. DeGrauwe and F. P. Mongelli, “Endogeneities of Optimum Currency Areas: What Brings Countries Sharing a Single Currency Closer Together?” 2005.

[9]   T. Warin, P. V. Wunnava and H. P. Janicki, “Testing Mundell’s Intuition of Endogenous OCA Theory,” Review of International Economics, Vol. 17, No. 1, 2009, pp. 74-86.

[10]   European Commission, “Quarterly Report on the Euro Area,” Economic and Financial Affairs, Vol. 1, No. 1, March 2010, pp. 1-42.