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On the Perils of Adopting the Euro in the New Accession Countries

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Author Info
Mariusz K. Krawczyk () (Faculty of Economics, Fukuoka University, Fukuoka, Japan.)
Abstract

The politically and legally complicated character of the EU Eastern Enlargement heavily in?uenced the con?ict between the legal and economic rationality behind the construction of the EMR-II. This makes the ERM-II vulnerable to currency crises and creates conditions for a widespread currency and asset substitution in the accession countries. As a result, the participation in the ERM-II imposes unnecessary costs on the whole enlargement process. The costs could be avoided if the EU adopted a more ?exible approach to the enlargement of its monetary union, allowing for an individual path of adopting the euro in each accession country depending on its economic conditions.

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Publisher Info
Article provided by Institute of SocioEconomics in its journal Homo Oeconomicus.

Volume (Year): 21 (2004)
Issue (Month): ()
Pages: 597-619
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Handle: RePEc:hom:homoec:v:21:y:2004:p:597-619

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