Bank of Israel paper says Europe is sub-optimal currency area


A paper published on August 15 in the Bank of Israel's economic review argues that, in contrast to the US, Europe does not meet the criteria for an optimal currency area. The paper suggests greater political union is needed to preserve the euro.

The authors, Assaf Razin and Steven Rosefielde, identify a trade-off in the decision to join a currency union – a country sacrifices control of monetary policy in exchange for greater intra-regional trade and labour mobility. "The US provides a good

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: