ABSTRACT
In the early 1960s, Robert Mundell discussed the concept of the optimum size of a region in which a single currency can be in operation efficiently. That he has Europe in mind becomes clear from this observation: ‘In Western Europe the creation of the Common Market is regarded by many as an important step toward eventual political union, and the subject of a common currency for the six countries has been much discussed.’ (Mundell, 1961, 661).
