Global Journal of Economic and Finance Research

This paper analyses the issue of optimal currency areas, based on various studies, in particular that of Robert Mundell, which shows that the effectiveness of a monetary union is based on specific criteria: labour mobility, diversification of economies, degree of market openness, similarity of production structures and the ability to jointly manage transfers. 

In the light of this theory, we argue that neither the euro zone nor the CFA zone fully meet Mundell's criteria for an optimal currency area. Both regions are characterised by structural challenges that undermine their effectiveness as monetary unions.

currency area, optimality, problems, monetary agreements, lesson

1. Alesina, A. & Tenreyro, S. (2002), "Optimal Currency Unions", Working Paper 9072, National Bureau of Economic Research. 
2. BCEAO (2023), "Rapport sur la situation de l'inclusion financière dans l'UEMOA, au cours de l'année 2022. 
3. Berthaud, P. (2006), "Intégration économique et gouvernance internationale: un programme de recherche en économie politique internationale (EPI)". Économies et finances, Université Pierre Mendès-France - Grenoble II. 
4. Erkel - Rousse, H. (1997), "Degré de flexibilité des marchés du travail, ajustement des chocs des asumétriques et Union Monétaire Européenne", Economie et Prévision. 128(2), 79-100. 
5. Frankel, A & Rose K. (1998), "The endogeneity Of the Optimum Currency Area Criteria", economic journal, 108(449), 1009-1025. 
6. Gravet, M. (2014), "Zone euro et spécialisation productive". Ressources en sciences économiques et sociales, École Normale Supérieure de Lyon. 
7. Ingram, J. (1962), "Regional Payments Mechanisms: The Case of Puerto Rico". Raleigh, NC: University of North Carolina Press. 
8. Kenen B. (1969), "The theory of Optimum Currency Areas". 
9. Krugman P. & Obstfeld M. (2000), "International Economic: theory and policy", 5thed. Sultan Qaboos University, Muscat. 
10. McKinnon, R. I. (1963), "Optimum Currency Areas". American Economic Review, 54(3), 712-725. 
11. Mundell, R. (1961), "A Theory of Optimum Currency Areas". The American Economic Review, 51(4), 657-665. 
12. Musungaie, A. (2010), "Monetary integration in Africa: particularities and economic rationality". Reflets et perspectives de la vie économique, XLIX, 8392. 
13. OECD (2023), "The Economies of the European Union and the Euro Area at a Glance", https://www.oecd.org/fr.html