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Perspectives on Euro introduction in the Romanian economy

Author

Listed:
  • Codruţa Mare

    () (The Romanian Academy and The “Babeş-Bolyai” University of Cluj Napoca, Faculty of Economics and Business Administration)

  • Cristian Litan

    () (The “Babeş-Bolyai” University of Cluj Napoca, Faculty of Economics and Business Administration)

Abstract

This paper offers a first quantitative glance at the possible effects of preparing for Euro adoption, as well as at the ex-post effects of actual adoption. Although the complexity of the models considered gradually increases, nevertheless all the simulations provide the same general picture in which (short and sometimes medium term) restrictiveness is revealed. The results show that for Romania, fulfilling the Maastricht criteria implies short-term economic slowdown and restrictiveness, followed by economic recovery and growth in the medium term and especially the long run. Quantitative estimates of these effects are provided. The most important negative evolutions are to be found for the labour market and investment.

Suggested Citation

  • Codruţa Mare & Cristian Litan, 2012. "Perspectives on Euro introduction in the Romanian economy," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 12(1), pages 23-40, July.
  • Handle: RePEc:bic:journl:v:12:y:2012:i:1:p:23-40
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Cristian Dragos & Simona Laura Dragos, 2012. "Econometric Estimations of the Services and Financial Sector Impact on Economic Growth Variations in Times of Crisis," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(Special N), pages 621-634, November.

    More about this item

    Keywords

    effects of European monetary integration; models; simulations; impulse responses;

    JEL classification:

    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications

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