Abstract
Euro zone is created along with theory of optimal currency area. This theory is not the only solution that indicates how to integrate countries in the common currency area. The euro area requires that labor productivity is at a similar level. Central European countries, on the other hand, have much lower labor productivity than Western European countries. The question arises about the possibility of creating a currency zone for countries with different levels of productivity. In this paper, it is indicated that there is a positive answer in this matter. However, this requires a rethinking and definition of the basic arrangement of the economic concepts. The paper indicates a method of translating economic values into value of the one currency. The main measurer limiting freedom is the labor productivity index, which cannot decrease what would cause inflation. The lower labor productivity means only that employees have the lower earnings.
Highlights
Theory of optimal currency area is the supporting knowledge base of the European euro area
A significant part of this paper develops a measurement of labor productivity ratio as a chief economic measurer
Algorithms for translating remuneration for work into a common monetary unit introduced in the integrating currency area are presented
Summary
Theory of optimal currency area is the supporting knowledge base of the European euro area. The accession of new members is doubtful since euro area is clearly discriminatory and exclusionary to countries with productivity levels significantly lower than in the founding member states. Contrary to euro area here is presented consideration that develops an idea of integrative currency area (ICA). The ICA application in the Central Europe will work for real integration of countries. The ICA can involve countries with different productivity levels that do not fulfill the Maastricht criterion. Confidence is growing that the current geopolitical circumstances are unstable and will undergo changes In this state of affairs, the Central-Europe countries should seek courses of action appropriate for the strengthening of sovereignty and the ways of entrance to the circle of countries of much significant in world politics
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