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METHODOLOGY for: Is Europe an Optimum currency area - Dissertation Example

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Methodology Scope of the study The research paper aims at analyzing the condition of Europe as a continent and the standard of Euro as a currency. The paper makes an effort to analyze the effect of Euro as a common currency in the European continent. The research paper also makes an effort to study the effect of the countries including Spain, Portugal, Greece and Estonia on the currency Euro…
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METHODOLOGY for: Is Europe an Optimum currency area
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METHODOLOGY for: Is Europe an Optimum currency area

Download file to see previous pages... The scope of the study will involve a thorough reading of the previous works on Europe and Euro as a currency and also about its currency, which will help in analyzing Europe as a continent and Euro as a currency. The study will also include the thorough reading of the Mundell theories that are available on Europe, which will further determine the opinion of the Colombia Professors. The stationary expectation of the Mundell theories has been used to examine Europe as a currency area. The research questions of how the stronger countries are affecting the weaker countries can be analyzed with the help of certain parameters like Labor mobility across the region, Openness with capital mobility and price and wage flexibility across the region, production diversification, homogenous preferences, commonality of destiny, participant countries have similar business cycles can be examined. Whether Europe is a currency area or not can also be analyzed on the basis of the aforesaid parameters. This would further help in analyzing the effect of the currency on the continent and its countries. Research Technique The research paper has adopted the secondary research technique, which included a comprehensive literature survey on the previous studies made on Europe and Euro. The study included a thorough understanding and analyzing of the books on “The currency Of Ideas: Monetary Politics in the European Union” by Kathleen Mc Namara, “Optimum Currency Areas and the European Experience” by Ronald McKinnon, “A theory of optimum currency areas” and “Uncommon Arguments for common currencies” by Robert Mundell. The study also includes referring and considering works of Asta Vasiliauskaite and Mindaugus Vitakauskas.  A research paper involves the collection of information from external sources and thereby analyzing it by using statistical analysis and other tools. Thus the task of the researcher is to assemble information from reliable sources and integrate and analyze it. Here the method adopted is secondary research method, which includes the usage of the relevant information, and data that are available. This approach takes into account the data, which has been already collected by someone else. The research paper base its work on the secondary research as Primary Research is an expensive and time consuming method which requires the researcher to collect the data himself or herself. Primary research also tends to constrain the data and the chance of misinterpreting the data also arises in the primary research. Owing to the disadvantages of the primary research, the paper adopts the secondary method of data assembling which is much more cost effective and not at all time consuming and in the era of Information and communication technology revolution getting access of the data or information on the internet is not at all difficult. (Primary and Secondary research, n. d) An article on “Is Europe an optimum currency area?” takes a mixed approach where the paper is based on certain parameters like Asymmetric shock, openness, diversification and trade dissimilarity, labor mobility, the effects of asymmetric shocks, fiscal transfers, homogenous preferences, commonality of destiny versus nationalism. This is an approach based on the study undertaken by Robert Mundell, which emphasizes on the fact that labor mobility will ensure more ...Download file to see next pagesRead More
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