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Euro Adoption in Romania: An Exploration of Convergence Criteria

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  • Georgiana-Loredana Schipor

    (“Ovidius†University of Constanta)

Abstract

The aim of this paper is to analyze the position of Romania towards the Maastricht criteria, starting from the assumption that meeting the nominal convergence criteria is no longer enough for the Romanian adoption of euro. The most significant risks that the artificially integrated countries must face after the accession to the Euro Area were identified, using a large number of economic indicators that were distilled in order to design the Romanian progress in the process. The Romanian entrance into the Eurozone emphasize its major cost: the loss of monetary policy independence. The current methodological approach is twofold. First, the nominal and real convergence criteria were examined based on one-point-in-time approach. Second, it was considered the Romanian people perception about the adoption of the euro currency in accordance with a sequence of key-events suggesting a significant change due to multiple abandoned adoption targets, Brexit event or the pandemic context.

Suggested Citation

  • Georgiana-Loredana Schipor, 2020. "Euro Adoption in Romania: An Exploration of Convergence Criteria," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 190-199, December.
    • Handle: RePEc:ovi:oviste:v:xx:y:2020:i:2:p:190-199
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    References listed on IDEAS

    as
    1. Gabriela Dragan & Gabriela Pascariu, 2008. "Romania and the Euro’s Adoption. Between Real and Nominal Convergence," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 11(27), pages 27-48, January.
    2. Alberto Alesina & Robert J. Barro & Silvana Tenreyro, 2003. "Optimal Currency Areas," NBER Chapters, in: NBER Macroeconomics Annual 2002, Volume 17, pages 301-356, National Bureau of Economic Research, Inc.
    3. Deskar-Škrbić, Milan & Kotarac, Karlo & Kunovac, Davor, 2020. "The third round of euro area enlargement: Are the candidates ready?," Journal of International Money and Finance, Elsevier, vol. 107(C).
    4. J.M. Figuet & Nikolay Nenovsky, 2006. "Convergence and Shocks in the road to EU: Empirical investigations for Bulgaria and Romania," Post-Print halshs-00259703, HAL.
    5. Monica Raileanu Szeles & Nicolae Marinescu, 2010. "Real convergence in the CEECs, euro area accession and the role of Romania," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 7(1), pages 181-202, June.
    6. repec:jes:wpaper:y:2012:v:4:p:152-163 is not listed on IDEAS
    7. Cristina Duhnea & Silvia Ghita-Mitrescu & Diane Paula Corina Vancea, 2012. "Euro Adoption – The Illusion Of The Monetary Integration Of Romania," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 4(2), pages 152-163, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    nominal convergence; real convergence; Euro Area; Romania;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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