Optimum Currency Area Theory: Albanian Case

Abstract

This paper is focused in the literature of the optimum currency area (OCA) and in the Albanian case as an application of this theory in practice. According to the literature the OCA has passed through phases: the "pioneering phase" which settled down the OCA theory and its properties, the "reconciliation phase" when the properties are explained in more details, the "reassessment phase" that led to the "new OCA theory", and the "empirical phase" during which the theory was subject to due empirical studies. After a brief view of the OCA properties, all these ones have been taken into the consideration in order to have a clear answer to the question whether or not Albania is ready for an early europisation. Seen the general view of the economists, the currency union has the major part in its side.