Monetary integration strategies and perspectives of new EU countries
AbstractThe poor record of economic convergence between the euro area and those countries that joined the European Union (EU) in May 2004 raises serious doubts about the possibility for the latter countries to adopt the European single currency in the not too distant future. In fact, many new EU countries would have to make considerable efforts in order to fulfil all EMU criteria by the end of the present decade. These efforts could lead to output and growth losses in these countries, which would run counter to their catching-up process with respect to the rest of the EU. To avoid a number of shortcomings elicited by the obligation to respect the convergence criteria in the short term, and also to avoid the financial instability risks implied by participation in the ERM II, this paper suggests an alternative plan for integrating the new EU countries monetarily. The plan consists in creating a European settlement agent in charge of the final payment of the new EU countries' international transactions. These transactions would be settled using an international monetary standard whose creation would eliminate instability on the foreign exchange market by its being the yardstick that the current international monetary system lacks.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Review of Applied Economics.
Volume (Year): 18 (2004)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CIRA20
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fischer, Stanley & Sahay, Ratna & Vegh, Carlos, 1998.
"From transition to market: Evidence and growth prospects,"
20615, University Library of Munich, Germany.
- Ratna Sahay & Stanley Fischer & Carlos A. VÃ©gh Gramont, 1998. "From Transition to Market - Evidence and Growth Prospects," IMF Working Papers 98/52, International Monetary Fund.
- Anderton, R. & Skudelny, F., 2001. "Exchange Rate Volatility and Euro Area Imports," Papers 64, Quebec a Montreal - Recherche en gestion.
- Fischer, Stanley & Sahay, Ratna & Vegh, Carlos, 1998.
"How far is Eastern Europe from Brussels?,"
20059, University Library of Munich, Germany.
- Massimo Sbracia & Andrea Zaghini, 2003.
"The Role of the Banking System in the International Transmission of Shocks,"
The World Economy,
Wiley Blackwell, vol. 26(5), pages 727-754, 05.
- Massimo Sbracia & Andrea Zaghini, 2001. "The Role of the Banking System in the International Transmission of Shocks," Temi di discussione (Economic working papers) 409, Bank of Italy, Economic Research and International Relations Area.
- Fidrmuc, Jarko & Korhonen, Iikka, 2001.
"Similarity of supply and demand shocks between the Euro area and the CEECs,"
BOFIT Discussion Papers
14/2001, Bank of Finland, Institute for Economies in Transition.
- Fidrmuc, Jarko & Korhonen, Iikka, 2003. "Similarity of supply and demand shocks between the euro area and the CEECs," Economic Systems, Elsevier, vol. 27(3), pages 313-334, September.
- Fidrmuc, Jarko & Iikka Korhonen, 2003. "Similarity of Supply and Demand Shocks Between the Euro Area and the CEECs," Royal Economic Society Annual Conference 2003 77, Royal Economic Society.
- Buiter, Willem H & Grafe, Clemens, 2002. "Anchor, Float or Abandon Ship: Exchange Rate Regimes for Accession Countries," CEPR Discussion Papers 3184, C.E.P.R. Discussion Papers.
- Frederic S. Mishkin, 2001. "Financial Policies and the Prevention of Financial Crises in Emerging Market Countries," NBER Working Papers 8087, National Bureau of Economic Research, Inc.
- Philip Arestis & Andrew Brown & Kostas Mouratidis & Malcolm Sawyer, 2002. "The Euro: Reflections on the first three years," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(1), pages 1-17.
- Hein, Eckhard & Truger, Achim, 2002.
"European Monetary Union: Nominal convergence, real divergence and slow growth? An investigation into the effects of changing macroeconomic policy institutions associated with monetary union,"
WSI Discussion Papers
107, Wirtschafts- und Sozialwissenschaftliches Institut (WSI), Hans-Böckler-Stiftung.
- Eckhard Hein & Achim Truger, 2005. "European Monetary Union: Nominal Convergence, Real Divergence and Slow Growth? An investigation into the effects of changing macroeconomic policy institutions associated with monetary union," Macroeconomics 0501011, EconWPA.
- Davidson, Paul, 1972. "Money and the Real World," Economic Journal, Royal Economic Society, vol. 82(325), pages 101-15, March.
- Dafflon, Bernard & Rossi, Sergio, 1999. " Public Accounting Fudges towards EMU: A First Empirical Survey and Some Public Choice Considerations," Public Choice, Springer, vol. 101(1-2), pages 59-84, October.
- Anderton, Robert & Skudelny, Frauke, 2001. "Exchange rate volatility and euro area imports," Working Paper Series 0064, European Central Bank.
- Helge Berger, 2002. "The ECB and Euro-Area Enlargement," IMF Working Papers 02/175, International Monetary Fund.
- Bofinger, Peter & Wollmershauser, Timo, 2001. "Is there a third way to EMU for the EU accession countries?," Economic Systems, Elsevier, vol. 25(3), pages 253-274, September.
- Peter Backé & Christian Thimann & Olga Arratibel & Oscar Calvo-Gonzalez & Arnaud Mehl & Carolin Nerlich, 2004. "The acceding countries’ strategies towards ERM II and the adoption of the euro - an analytical review," Occasional Paper Series 10, European Central Bank.
- Peter B. Kenen & Ellen E. Meade, 2003. "EU Accession and the Euro: Close Together or Far Apart?," Policy Briefs PB03-09, Peterson Institute for International Economics.
- Baldwin, Richard & Berglöf, Erik & Giavazzi, Francesco & Widgrén, Mika, 2000. "EU Reforms for Tomorrow’s Europe," CEPR Discussion Papers 2623, C.E.P.R. Discussion Papers.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.