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Aspects Regarding The Evolution Of Nominal And Real Convergenge Before And After Adhesion To Euro Zone


  • Lucian Claudiu ANGHEL

    () (College of Management, National University of Political Studies and Public Administration, Bucharest, Romania)

  • Florina PÎNZARU

    (College of Management, National University of Political Studies and Public Administration, Bucharest, Romania)

  • Mihaela DINU

    () (College of Management, National University of Political Studies and Public Administration, Bucharest, Romania)


This paper presents the analysis of some aspects of nominal and real convergence for 6 countries having adhered to the euro zone until 2013; it is an in-depth analysis of inflation, together with the main components of the consumption basket in the candidate countries. The article will analyse economic competitiveness of Slovenia, Greece, Malta, Cyprus, Estonia and Slovakia, since the adhesion to the euro zone implies giving up the exchange rate policy independence, with an impact on the possibility of further support for price competitiveness. The analysis of competitiveness before adopting the euro (in the framework of the Exchange Rate Mechanism II) will be made based on the market share within the European Union and on the effective real exchange rate. It is important to find out whether adhesion to the euro zone automatically brings an increase of exports competitiveness and an increasing market share within the euro zone for the member states. Competitiveness through the real effective exchange rate will be analysed through consumer prices indexes, the unit cost of work and export prices. The analysis underlines important aspects to be taken into account by every country that could adhere to the euro zone. The choice of the moment for the entry into ERM II is crucial for future candidates to the euro zone, as forcing an early entry could negatively influence their long term economic evolution.

Suggested Citation

  • Lucian Claudiu ANGHEL & Florina PÎNZARU & Mihaela DINU, 2014. "Aspects Regarding The Evolution Of Nominal And Real Convergenge Before And After Adhesion To Euro Zone," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 14, pages 151-161, December.
  • Handle: RePEc:aic:revebs:y:2014:d:14:anghell

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    References listed on IDEAS

    1. Dumitru, Ionut & Jianu, Ionela, 2009. "The Balassa-Samuelson effect in Romania - The role of regulated prices," European Journal of Operational Research, Elsevier, vol. 194(3), pages 873-887, May.
    2. Bela Balassa, 1964. "The Purchasing-Power Parity Doctrine: A Reappraisal," Journal of Political Economy, University of Chicago Press, vol. 72, pages 584-584.
    3. Bulir, Ales & Smidkova, Katerina, 2005. "Exchange rates in the new EU accession countries: What have we learned from the forerunners?," Economic Systems, Elsevier, vol. 29(2), pages 163-186, June.
    4. Konstantins Benkovskis & Julia Woerz, 2012. "Evaluation of Non-price Competitiveness of Exports from Central, Eastern and Southeastern European Countries in the EU Market," Working Papers 2012/01, Latvijas Banka.
    5. Altar, Moisa & Albu, Lucian Liviu & Dumitru, Ionut & Necula, Ciprian, 2009. "Estimarea Cursului Real de Echilibru si a Deviatiilor pentru Romania," Studii Economice 090706, National Institute of Economic Research.
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    More about this item


    nominal convergence; real convergence; effective real exchange rate; market share; price competitiveness;

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions


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