Over the lasts fifty years, an extensive body of literature has developed that details the characteristics any group of economic regions ought to have in order to share a currency. Optimum Currency Area theory, as it is known, specifies a mobile labor force, a stabilizing fiscal power during economic downturns, and economies with similar business cycles as traits that nations ought to have to successfully adopt a common currency. Applying OCA theory to Iceland by examining the relevant characteristics of Iceland's economy, this paper addresses the question: Can and should Iceland join the Eurozone? Motivation: To summarize a contemporary economic issue of Iceland.
