Endogenous Research On The Eurozong Economy

Since the 1990 s,the world economy developed very fast,the united progress of economy and financial was accelerating,the relationship of trade between countries became close.In order to drive the max profits and reduce risk,the country set up regional economic cooperation organization to strengthen cooperation,and with the regional economic cooperation was the monetary cooperation.the theoretical basis of monetary cooperation was optimal currency area theory.From the optimal currency area theory was put forward in 1961 has been fifty years,the Economists put forward their point of view,these views constantly enriched and developed the theory of optimum currency areas in this years.The endogenous theory was put forward by the Frankel and Ross played a substantial contribution to the theory of optimum currency area.On the basis of the endogenous theory,the first common currency zone-the euro zone was established in human history which inspired those with similar conditions and countries not yet established a unified currency.After the establishment of the euro area,the strength of the euro area grow rapidly,the euro also plays an important role in the world monetary system.Therefore,it is necessary to verify the economic situation in the euro area.After the European debt crisis broke out,the euro zone has became the focus of the whole economics.In this context,this article will present the endogenous theory and combine with data to test whether the euro zone has reached the endogenous convergence.At first,this article introduces why choose the euro zone as the research object of this article and the structure of the article,then introduces the research methods of this article.In this paper,the study of the endogenous of the euro zone economy is based on the theory of endogenous.So,this article made the simple narration about the theory of optimum currency areas.This part include the standard of the optimum currency area theory and other criteria.Some economists began to research the costs and benefits of the optimum currency area.The development of theory in 60-80 s of the 20 th broaden the direction of the theory of optimum currency areas and laid a theoretical foundation for the endogenous theory.In the1990's,the optimal currency area theory had a substantial development.Frankel and Ross believe the optimal currency area criteria exist endogenous and verify their hypothesis from the perspective of trade.Some later scholars prove the existence of endogenous from the from the perspective of the rate ofinflation,fiscal policy and exchange rate.The endogenous theory promote the practice of monetary integration process,and people discuss the optimum currency area from the convergence of advance of target into afterwards.The euro zone was formally established in 1999 to now has been running for 17 years,and whether the euro zone has reached the convergence in the 17 years? This paper verify it from GDP,unemployment,the rate of inflation,fiscal deficit,the government debt account,and find the euro zone did not achieve convergence.Then the article carry the beta convergence and sigma convergence on the euro zone's real GDP per capital by convergence model and test results did not support the theory of endogenous convergence.In the last part of this paper,this paper explain the conclusion combined with the purpose of this study,express some opinions about the future of the euro zone and give some advise.