Participation of Czech Economy in the Project of European Monetary Union (EMU) from the Viewpoint of the Theory of Optimum Currency Areas

The theory of optimum currency areas defines three basic criteria, which should qualify the countries entering the monetary union. The extent of meeting these criteria influences the contributions and costs connected with this step. The analysis of given criteria for the Czech Republic and EMU proves that none of indicator parameters of the optimum currency area shows values which would put the Czech Republic at a disadvantage as compared with the current EMU members. From the theoretical point of view there are no obstacles, which would make impossible to create a functioning monetary union of the Czech Republic with the current EMU members.