When the euro bloc was formed, among the European Union members not to join were Denmark and Sweden. These two countries did not join the euro bloc after “no” votes in referendums in each country. Perhaps the people of these countries felt the euro bloc was too large a step. A smaller step would be a Scandinavian common currency area. In this paper we present estimates of transactions costs savings associated with such a common currency and results from revealed preference tests of microeconomic foundations of an Scandinavian common currency area. Our results can be viewed as broadly favorable toward the formation of an Scandinavian common currency area.