Parallel Currency as the Solution to Macroeconomic Imbalances of Countries in the Eurozone

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F12%3A00192469" target="_blank" >RIV/62156489:43110/12:00192469 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

čeština

Original language name

Parallel Currency as the Solution to Macroeconomic Imbalances of Countries in the Eurozone

Original language description

This paper studies The Theory of Optimum Currency Areas (OCA) as the theoretical foundation of monetary integration in European Union. Current Eurozone problems pose questions which are not sufficiently answered within the OCA theory. A significant one is a possible introduction of a parallel currency while keeping the euro for specific purposes for a limited period of time. As the key contribution of this paper we provide a basic concept which, when properly developed, could lead to establishing a parallel currency market in several Eurozone states. We propose an arrangement where the Euro and a parallel currency both have its own purpose. Common currency should be used mainly in public sector in non-cash form while a new parallel currency in privatesector in the form of "no-name" certificates. Main purpose of introduction of parallel currency is to boost economic growth and increase competitiveness through its devaluation. We also outline benefits and costs of establishing a paralle

Czech name

Parallel Currency as the Solution to Macroeconomic Imbalances of Countries in the Eurozone

Czech description

This paper studies The Theory of Optimum Currency Areas (OCA) as the theoretical foundation of monetary integration in European Union. Current Eurozone problems pose questions which are not sufficiently answered within the OCA theory. A significant one is a possible introduction of a parallel currency while keeping the euro for specific purposes for a limited period of time. As the key contribution of this paper we provide a basic concept which, when properly developed, could lead to establishing a parallel currency market in several Eurozone states. We propose an arrangement where the Euro and a parallel currency both have its own purpose. Common currency should be used mainly in public sector in non-cash form while a new parallel currency in privatesector in the form of "no-name" certificates. Main purpose of introduction of parallel currency is to boost economic growth and increase competitiveness through its devaluation. We also outline benefits and costs of establishing a paralle

Type

C - Chapter in a specialist book

CEP classification

AH - Economics

OECD FORD branch

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Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2012

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Book/collection name

Eurozone and its neighbors: the third year of crisis.

ISBN

978-80-87106-60-0

Number of pages of the result

10

Pages from-to

77-86

Number of pages of the book

234

Publisher name

Martin Stříž Publishing

Place of publication

Bučovice

UT code for WoS chapter

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