The Economics of Common Currencies

FOREWORD

This volume contains the papers presented at the conference on Optimum Currency Areas held in Madrid, on March 16–19, 1970. At a time when Europe was seeking an approach to monetary union, optimum currency areas became a suitable umbrella under which to organize discussions between monetary officials, professors and bankers on issues combining theoretical problems and monetary statecraft. How should the world form and react to new currency blocs; what exchange rate systems are most appropriate between them; and how will the new arrangements affect the Bretton Woods System? Despite the drama of currency events in the two years following the conference – many of which were predicted there – the issues discussed will have relevance for ...