Balkan and Mediterranean Candidates for European Union Membership: The Convergence of their Monetary Policy with that of the European Central Bank
AbstractWe compare the convergence with German monetary policy of the Balkan and Mediterranean country candidates for EU membership with that of countries that have recently joined the EU. Significant linkages exist between German base money stock and that of recent members of the EU; the same holds true for some of the Mediterranean region candidates for EU membership and for Slovenia and Croatia. Among the other Balkan economies and Turkey, the ability to follow the policies of the Bundesbank is nonexistent. Such weak policy coordination suggests the need for strengthening the financial sectors of these countries, for macroeconomic stabilization and for a period in which they tie their policies more closely to the ECB before they can be considered serious candidates for EU membership.
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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 456.
Length: 15 pages
Date of creation: 01 Apr 2002
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convergence; economic integration; monetary policy; transition economies; Balkans;
Other versions of this item:
- Josef Brada, Ali M. Kutan, 2002. "Balkan and Mediterranean Candidates for European Union Membership: The Convergence of Their Monetary Policy with That of the European Central Bank," Eastern European Economics, M.E. Sharpe, Inc., M.E. Sharpe, Inc., vol. 40(4), pages 31-44, July.
- Brada, Josef C. & Kutan, Ali M., 2001. "Balkan and Mediterranean candidates for European Union membership: The convergence of their monetary policy with that of the European Central Bank," ZEI Working Papers B 21-2001, ZEI - Center for European Integration Studies, University of Bonn.
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
- F15 - International Economics - - Trade - - - Economic Integration
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-06-18 (All new papers)
- NEP-EEC-2002-06-18 (European Economics)
- NEP-FIN-2002-06-18 (Finance)
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