A Convergence Analysis of the Russian and Belarusian Economies in the Case of Monetary Integration

In this paper the author describes and elaborates upon the main ideas of the theories underlying Optimum Currency Areas (OCAs).

This work explains the main features which help with understanding the differences between an Optimum Currency Area (OCA) and a Currency Union. The paper also provides some models for Optimum Currency Areas (OCAs) and separately considers the main benefits and costs for countries when they decide to create and join an Optimum Currency Area (OCA). Within the framework of the research described in the paper the author carries out a qualitative comparative analysis of the economies of Russia and Belarus, identifies the main directions of economic development for both countries and draws conclusions about the degree of convergence of the Russian and Belarusian economies in a Currency Union scenario based on the approaches to the Optimum Currency Area (OCA) theory being examined.