ABSTRACT
The aim of this chapter is to use a behavioural political economy perspective to revise the standard approach of optimal currency areas and apply it to the eurozone case. We discuss the pros and cons of eurozone membership assuming that behavioural biases influence citizens and, consequently, political actors, as suggested by prospect theory. The theoretical framework is used to analyse the conditions under which the euro-irreversibility assumption is likely to hold and, in particular, the support for eurozone membership in a selected country.
