The analysis of European Monetary Union within the framework of the teory of optimum currency area

European Union, aiming full integration and probably United States of European in the long term, is regarded as most developed integration movement among similar movements. After the collapse of Bretton Woods System, economic and monetary union which is inevitable is critically important for European Union countries and world economy. Euro which was come into use as a bank money officially in 1999 was regarded as a beginning of a new era.One money and monetary union application of which theoretical basis is based on Optimum Currency Area, is optimal in case of fact that the adverse affects of probable asymmetric shocks can be reduced to the lowest via member countries? economic conditions in Union. Thus, the good working of economic and monetary union is positively correlated with optimality of Euro Area.From this point, European Monetary Union is tried to be evaluated according to criteria of optimum currency area which is progressively developed in the course of time. In present, it is seen that it doesn?t show optimality in terms of the movement of Union?s labor force, it shows optimality in terms of openness, product diversity, similarity of inflation rates and even integration of financial and capital markets. However, some countries are having tendency to specialize in particular product groups, and especially after 2008 remarkable worsening off economic indicators of some countries; these all point out that the optimality of Union will be tested for a while.