OCA and the Eurozone: Key Studies

Question 1

Mundell (1961)

Answer 1

Labour Mobility creates a single labour market by removing legal barrier and creates homogeneity of institutional contracts

Question 2

Lane (2013)

Answer 2

Post financial crisis there has been a 5% decrease in capital flow in the Eurozone

Question 3

Mogelli (2016)

Answer 3

There has been a general increase in specialisation in the Eurozone since 1999.

Question 4

Kaboor and Collar (2014)

Answer 4

Southern Eurozone debt has doubles between 1980 and 2010.

Question 5

Baldwin (2018)

Answer 5

EU import and exports as a percentage of GDP have been consistently higher than the US.

Question 6

Jager and Hafner (2013)

Answer 6

Low specialisation and high product differentiation reduced the negative impact of asymmetric shocks.

Question 7

Mckinnon (1963)

Answer 7

Capital mobility allows allocation of resources across countries through supply and demand of market forces.

Question 8

Brinke and Dittrich (2016)

Answer 8

Labour mobility allows:
Movement from regions of low unemployment to regions with high unemployment.

Shifts fiscal pressure (benefits and welfare statistics).

Native relatives get increase income.

Question 9

Kenen (1966)

Answer 9

Proposed OCA criteria of negative effects of Specialisation