The Costs and Benefits of Euro-sation in Central-Eastern Europe Before or Instead of EMU Membership
AbstractCountries unable or unwilling to join a Monetary Union can partly replicate membership effects through either a Currency Board or formal replacement of the domestic currency by the currency of the Union. Schemes of this kind have been introduced recently in Transition Economies. The net balance of costs and benefits involved, for the country and the common currency area, are shown to be an empirical question, depending on a number of conditions and primarily on the degree of monetary, real, and institutional convergence already achieved beforehand. Positive net advantages may derive from dollar/Euro-isation but should not be taken for granted.
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Bibliographic InfoPaper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 340.
Date of creation: 01 Oct 2000
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Euro; monetary union; dollarisation; exchange rate regimes; convergence; transition;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-10-01 (All new papers)
- NEP-EEC-2001-10-01 (European Economics)
- NEP-IFN-2001-10-01 (International Finance)
- NEP-PKE-2001-10-01 (Post Keynesian Economics)
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