ЕВРОЗОНА ОПТИМАЛНО ВАЛУТНО ПОДРУЧЈЕ ИЛИ НЕ
IS THE EUROZONE OPTIMAL CURRENCY AREA

Summary/Abstract: The optimal currency area is a group of countries or regions, whose economies are well integrated with the trade in goods and services, as well as the integration of factor markets, or the ease with which labor and capital can move between countries joining the currency area. Overall, there is little evidence that the euro area product markets and operations are truly sufficiently integrated to form an optimal currency area. There is evidence that financial markets are integrated and that the euro has contributed to the growth in domestic trade. But this is not enough for the Eurozone to be an optimal currency area. Other factors such as low labor mobility, low level of fiscal federalism, insufficient level of political integration, insufficient compliance of economic cycles and economic structure indicate that in the Eurozone all the necessary conditions have not been created to have the characteristics of the optimal currency area. It is therefore difficult, almost impossible, to manage the asymmetric economic development of the eurozone countries through monetary policy. This requires the need for institutional and structural reforms of the European Union and the Eurozone, which will contribute to a greater degree of integration and which would create the conditions for the Eurozone to be an optimal currency area.

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