Bachelor Thesis from the year 2012 in the subject Economics – Monetary theory and policy, grade: 2, 0, Frankfurt School of Finance & Management, language: English, abstract: The main objective of this thesis is to find out whether the PRo C is an OCA and what does it mean for the EMU. Based on the differences between the two currency areas, I would like to discuss whether there are any lessons that are worthwhile to be learned from the PRo C by the EMU to face better current and future crises. Therefore, the thesis is organized as follows. Section 2 provides an overview of the theoretical framework which this bachelor thesis is based on, namely the theory of OCA. Section 3 explains the methodology of my empirical study and describes the used data set. Section 4 examines the PRo C as an OCA. I evaluate each criterion on the basis of my own empirical study or available literature. After I briefly analyzed the Euro Crisis in section 5, I compare the EMU with the PRo C on the basis of OCA criteria followed by a discussion why there are differences and whether the EMU could improve conditions as a common currency area by learning from the PRo C. Section 6 concludes my findings and relate them to my opening questions of this introduction.
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