AbstractAfter presenting the institutional construction during the pre-accession and post-accession to the Economic and Monetary Union (EMU), the exchange rate mechanisms (ERM) in several countries and the convergence criteria, we go on with a brief analysis of the way the CEE countries cope with the convergence criteria in accordance with the Maastricht Treaty. Then, the study deals with a topic often discussed in the scientific literature and included on the agenda of decision-makers at various levels, in order to clarify the following major issues: a shorter transition to the euro, the exchange rate equilibrium versus the inflation rate diminution and the Balassa-Samuelson effect, the exchange rates and the exchange rate deviation index, evidences concerning the real exchange rate equilibrium and the appreciation of the exchange rate in the CEE countries.
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Bibliographic InfoPaper provided by National Institute of Economic Research in its series Working Papers of National Institute of Economic Research with number 090602.
Length: 24 pages
Date of creation: Jun 2009
Date of revision:
Convergence criteria; exchange rate; exchange rate mechanisms; Euro Area; Balassa-Samuelson effect; tradable goods; non-tradable goods; exchange rate deviation index; purchasing power parity;
Other versions of this item:
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
- O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-06-03 (All new papers)
- NEP-CBA-2009-06-03 (Central Banking)
- NEP-IFN-2009-06-03 (International Finance)
- NEP-MON-2009-06-03 (Monetary Economics)
- NEP-OPM-2009-06-03 (Open Economy Macroeconomics)
- NEP-TRA-2009-06-03 (Transition Economics)
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