Optimal Monetary Areas and Monetary Policy. An Analysis over World Power Centers

Abstract

The phenomenon of power in international relations has always caused interest. The current international environment is extremely amplified and interconnected, and developments in recent decades have led to the foundation of a multipolar system. At present, the competition between power centers in the world economy is manifested at all levels of power, especially from an economic perspective. There is a clear desire for the Western European states that are members of the European Union and the BRICS to detach from their financial dependence on the US dollar and the United States financial instruments. We propose to analyze whether there are correlations between the monetary policies adopted by these entities and the characteristics of the optimal monetary areas. If monetary policy moves closer to the optimal monetary area specifications, then does that global influence increase?

Keywords

• power centers
• monetary union
• economic power
• optimal monetary area
• monetary policy