Optimum currency area: comparative economic analysis of V4 countries

This bachelor thesis deals with the Optimum Currency Area (OCA) theory and its application to the so-called Visegrad Four countries in terms of it. The examined V4 countries are – the Czech Republic, Slovak Republic, Hungary, and the Republic of Poland. These countries share similar cultural and historical experiences, commenced economic transitioning at the same time and were and are a significant cooperating group in the process of integration into the EU institutions. The analysis primarily focuses on exploring the real economic convergence criteria outlined in the OCA theory – factor mobility, production diversification and openness of trade. Initially, the topic of OCA is introduced, together with different standpoints on the problem. Then, real and nominal convergence criteria are discussed, along with the political dimension within the examined countries, recognised as a prerequisite for OCA theory. Research focuses purely on economic criteria though, omits “political criteria” such as solidarity, fiscal policy, and homogeneity of preferences. Proposed economic criteria are then discussed in individual chapters, followed by a brief evaluation of all four countries and how they progressed or regressed in terms of being an OCA with EZ. A conclusion follows, summarising the findings and highlighting the key insights of the analysis.