Kai Pfaffenbach / Reuters In 1961, the economist Robert Mundell published a paper laying out, per the title, “A Theory of Optimum Currency Areas.” In it, he inquired about the appropriate geographic extent of a shared unit of money. Was it the world? A country? Part of a country? A border-spanning region of, say, the western parts of the United States and Canada, with a separate currency circulating in the eastern parts of the two countries?
Topics: kai pfaffenbach reuters in robert mundell a theory optimum currency areas part canada but mundell s european economic community nobel prize today international monetary fund john stuart mill political economy walter bagehot the economist observing french-led latin monetary union world war i—bagehot before indeed money kathleen mcnamara georgetown university civil war industrial revolution given if national bureau economic research hugh rockoff the united states asymmetric pacific northwest european throughout as paul krugman social security medicare—obviously united states nobody european union s gdp eu s markets this a in in eu mundell the the united states can european europe greece bagehot for mcnamara in european union germany as union florida countries currencies number country region costs crisis kind published wrote unemployment goods benefits kinds shock people movement shocks common exports government spending medium question figure free move noted prices institutions sense big won terms membership
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