Basedon the 11majorcommercialBanksin China 2004-2009 totalfactorproductivity (TFP) calculations, this paper analyzedthetrendsof TFP andtheconvergence of TFP differences among the Banks.
An optimal currency area would require convergence on monetary, fiscal, exchange rate, and political policies, which in turn would lead to productivity and growth rate convergence, explained Roubini.