Belarusian Economic Research and Outreach Center

Convergence Analysis of Russia and Belarus Economies in Conditions of Monetary Integration

In this paper, I distinguish the main ideas of the theory of Optimal Currency Area (OCA). This work explains the main features, which help to understand the differences between an Optimum Currency Area and Currency Union. The paper also gives some models of optimal currency area and itemizes main benefits and costs for countries when they create a single currency zone. In the framework of research, I carry out a qualitative comparative analysis of the economies of Russia and Belarus and identify the main directions of their economic development. Based on the studied approaches of the Optimal Currency Area theory I draw conclusions about the degree of convergence of the Russia and Belarus economies in case of a currency union.