Is the EMU a viable common currency area? A VAR analysis of regional business cycles
Many commentators are skeptical about the long-run viability of the European Monetary
Union (EMU). This article compares the EMU with a well-functioning currency union, the
U.S., and finds that they are similar based on key criteria. On the basis of this analysis,
the EMU may be as viable as the U.S. monetary union.
