Evolution stages of the theory of optimum currency areas

The relevance of studying the theory of optimum currency areas (OCAs) is determined by the integration processes in the modern international monetary system and by the necessity of designing the stabilization policy within acting and emerging currency unions. The author reveals the prerequisites for OCAs theory development and investigates its history from its creation at the beginning of 1960-s up to the present day. The author suggests dividing the process of the theory development into five successive stages. As a result of the detailed analysis of first stage's works, the author reveals the approaches to definition of optimum currency areas and systemizes their criteria. The author characterizes the process of theoretical base expansion at the second stage of development. The main aspects of theory achievements reassessment that led to the new OCAs theory on the third evolution stage are demonstrated. The studies of fourth stage which contain the empirical tests of the OCA criteria are analyzed. The scientific and practical achievements of each evolutionary stage as well as methodological problems are discovered. The conclusion about imperfection of the existing models testifying the optimality criteria and estimating currency OCAs benefits and costs is made. Finally, the necessity of further OCAs investigation aiming at salvation of the current problems of existing and emerging currency unions is admitted.