Criteria used to predict the benefits of fixed exchange rates can be applied to benefits from an optimum currency union. Generally, benefits are higher whenever the:

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The benefits of an optimum currency union are higher when the home country's economy is similar to that of its union partners and they suffer similar types of economic "shocks." This is because a shared currency and monetary policy will work well for all parties when they face similar economic conditions and shocks. If the economies are too dissimilar, then a one-size-fits-all monetary policy may not work for all countries. Similarly, if there are large trade imbalances, then exchange rate adjustments may have been useful, but in a monetary union, those adjustments are not possible, which can lead to economic imbalances and conflicts. Therefore, balanced trade is not a significant criterion for predicting the benefits of an optimum currency union.

Criteria Used to Predict the Benefits of Fixed Exchange Rates