Designing Poland’s Macroeconomic Strategy on the Way to the Euro Area
AbstractIn this paper we discuss selected aspects of Poland’s road to the euro zone. Our attention focuses on the proper design of macroeconomic policy during the accession period. We address the issue of entering ERM II, with special attention to the choice of central parity, fluctuation bands, possible revaluation of the parity and sharing the burden of interventions with the ECB. Further we concentrate on the issue of a simultaneous fulfilment of all convergence criteria. We point at the central role of fiscal austerity in providing a save framework for fulfilling the inflation, exchange rate and, obviously, the public deficit criteria. The key role of timing is accentuated.
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Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 0404015.
Length: 27 pages
Date of creation: 20 Apr 2004
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Transition economies; ERM II; equilibrium exchange rate;
Other versions of this item:
- Jakub Borowski & Michal Brzoza-Brzezina, 2004. "Designing Poland's Macroeconomic Strategy on the Way to the Euro Area," EUI-RSCAS Working Papers 10, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-04-25 (All new papers)
- NEP-IFN-2004-04-25 (International Finance)
- NEP-MAC-2004-04-25 (Macroeconomics)
- NEP-MON-2004-04-25 (Monetary Economics)
- NEP-REG-2004-04-25 (Regulation)
- NEP-TRA-2004-04-25 (Transition Economics)
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