European monetary union and risks for real convergence

Bibliographic Data

ID6108740
AuthorsKamil Janáček (Bank of Mexico), Stanislava Janáčková
Year2004
Volume52
Issue4
Pages433-447
Publication date2004-08-01
Open AccessYes
TypeARTICLE
VenuePolitická ekonomie (JOURNAL)
Journal identifiersISSN: 0032-3233 • E-ISSN: 2336-8225
PublisherPrague University of Economics and Business (PUBLISHER • CZ)
DOI10.18267/j.polek.468
OpenAlexW2324037651
LanguageEN
Citations received6
References cited4

New members of the EU will not form an optimum currency area with the present eurozone member states. The article discusses some costs and benefits of an early EMU entry for the Czech Republic (and other Central-European economies). The authors concentrate on the consequences of loss of country-specific monetary policy, and of exchange-rate flexibility. They also stress the problem of finding the appropriate level at which to fix the exchange rate for both ERM-II and eurozone entry. The importance of both nominal and real convergence is underlined for a successful catch-up. The conclusion is that a "no hurry" policy for euro would be beneficial for a long-term catch-up process of the Czech Republic. Use of country-specific monetary policy is indispensable for real convergence

Common currency · Convergence (economics) · Currency · Czech · Economic and monetary union · Economics · European monetary union · European union · Exchange rate · Exchange-rate flexibility · Exchange-rate regime · Flexibility (engineering) · International economics · Macroeconomics · Monetary economics · Monetary policy · Optimum currency area · Economic and Fiscal Studies · European Monetary and Fiscal Policies

Tools

Open DOIOpen Access