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Literature and Theory

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Optimal Currency Areas and the Euro, Volume II

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Abstract

This chapter analyzes different theories on how factor mobility can counteract both symmetric and asymmetric economic shocks in currency unions, as well as states the research questions of this pivot. Moreover, it gives the reader a summary of the literature on labor and capital mobility, highlighting their importance to the well-functioning of currency unions, where countries are not able to execute their own monetary policies by themselves. The chapter also discusses the possibility of endogenous development of the EA toward more factor mobility over time.

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Notes

  1. 1.

    A specific analysis for highly qualified immigrants and their job opportunities in Denmark is offered by Dreyer et al. (2014).

  2. 2.

    For further discussion on beta convergence in light of the EU and EA, see Crespo Cuaresma et al. (2008) and Dreyer and Schmid (2017).

  3. 3.

    For a summary of the literature on labor mobility, please refer to the tables in Appendix 1.

  4. 4.

    The panel data set included only data of the former Western Germany.

  5. 5.

    For a summary of the literature on capital mobility, please refer to the tables in Appendix 2.

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Authors and Affiliations

  1. ISE, Roskilde University RUC, Roskilde, Denmark

    Johannes Kabderian Dreyer

  2. FOM University of Applied Sciences, Munich, Germany

    Peter Alfons Schmid

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  1. Johannes Kabderian Dreyer
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  2. Peter Alfons Schmid
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Correspondence to Johannes Kabderian Dreyer .

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Kabderian Dreyer, J., Schmid, P.A. (2023). Literature and Theory. In: Optimal Currency Areas and the Euro, Volume II. Palgrave Pivot, Cham. https://doi.org/10.1007/978-3-031-38867-5_2

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