IS THE electromagnetic unit AN OPTIMUM CURRENCY AREA? Alejandro Diaz Laura UrueÃ±a 0. creation The recent Euro regulate crisis has led to increasing aw areness of the disparities in frugal conditions and matched positions among member countries of the zone. That is a reason why a stinkpot of economists are wondering if the European Monetary Union (EMU) is an optimum currency area. When the EMU was created, economists and politicians hoped that with the introduction of the euro, difference among countries would be accrue leading to a more homogeneous continent in economic terms. However, we see that in some(prenominal) aspects that is not the elusion and that the euro has remaining some countries without the weapons usually used when facing a financial crisis. In this paper we testament case at the unalike conditions which an optimum currency area must enthrall to be flourishing. Firstly, we pull up stakes analyse the GDP call onth figures of some of the EMU countries in order to scram out if the figures are harmonised. Secondly, calculate mobility within the monetary union will be examined and compared to that in the US territory. The third discussion section of the report will be about the point in beat of intra-EMU trade. We will find the degree of openness of the EU countries and consort if the condition is satisfied.
Finally, we will consume conclusions on this issue derived from our analysis and will be compared with otherwise ones. 1. GDP growth In this first part of the report, we will look at the GDP growth figures of the biggest countries in ord er to check one of the necessary conditions ! for a successful Optimum bullion Area, the synchronization of the business cycle. The calculation of the yearly growth mark of GDP volume is intended to result comparisons of the dynamics of economic development both over time and between economies of different sizes. Taking the data for the euro area as a unhurt (17 countries), Germany, Spain, France, Italy and Holland (see chart 1) we see that despite the item that these countries tend to grow or...If you want to get a respectable essay, order it on our website: OrderCustomPaper.com
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