Economic monetary aggregates and common currency areas: The case of Scandinavia
James L. Swofford
University of South Alabama, USA
Please cite the paper as:
James L. Swofford, (2018), Economic monetary aggregates and common currency areas: The case of Scandinavia, World Economics Association (WEA) Conferences, No. 1 2018, Monetary Policy after the Global Crisis, 19th February to 2nd April, 2018
Barnett (1980) described how to identify and construct monetary aggregate consistent with economic theory. Swofford (2000) extended Barnett’s work to the subject of common currency areas.
When the euro bloc was formed, among the European Union members not to join were Denmark and Sweden. These two countries did not join the euro bloc after “no” votes in referendums in each country. Perhaps the people of these countries felt the euro bloc was too large a step.
In this paper results are presented from revealed preference tests of microeconomic foundations of a Scandinavian common currency area. These results can be viewed as broadly favorable toward the formation of a Scandinavian common currency area.