OPTIMUM CURRENCY AREA - THEORY AND PRACTICE.

In the beginning, we precisely define optimal currency area, and what is qualitative differency between the term Optimum currency area, and terms Currency area and Monetary union, that exists in the major of the European teritorry. In the second part of the paper we discuss major characteristics and assumptions needed to be fullfiled in order for currency area to be at the same time optimum currency area, too. In the third part we discussed deficiency of currecy area vs reasons to join it. Instead of conclusion we present briefly European experience in unique currency, as well as the issue is that particular currency area is at the same time optimum currency area. [ABSTRACT FROM AUTHOR]