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The Challenges of Euro Adoption in Romania: Some Lessons from the Greek Experience

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  • Ileana Tache

Abstract

Romania belongs to the group of the new EU members that are committed by the Treaty to adopt the euro, which implies that they must strive to fulfill all the nominal convergence criteria. Analyzing the Greece’s monetary experience towards the EMU and its available policy instruments for this goal, this paper tries to derive some challenging lessons for Romania on its path to euro adoption. The present Greek debt crisis and the background of the global financial crisis are also taken into consideration. The Greek situation shows that an overly ambitious timetable and effort for adopting the single currency can be rather costly for the country concerned and the endeavor to improve the performance of the economy must be a permanent process and not be limited to satisfying the Maastricht convergence criteria.

Suggested Citation

  • Ileana Tache, 2010. "The Challenges of Euro Adoption in Romania: Some Lessons from the Greek Experience," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 171-186.
    • Handle: RePEc:ers:journl:v:xiii:y:2010:i:2:p:171-186
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    References listed on IDEAS

    as
    1. Barro, Robert J. & Gordon, David B., 1983. "Rules, discretion and reputation in a model of monetary policy," Journal of Monetary Economics, Elsevier, vol. 12(1), pages 101-121.
    2. Papaspyrou, Theodoros, 2004. "EMU strategies: lessons from Greece in view of EU enlargement," LSE Research Online Documents on Economics 5687, London School of Economics and Political Science, LSE Library.
    3. George S. Tavlas, 2000. "On the Exchange Rate as a Nominal Anchor: The Rise and Fall of the Credibility Hypothesis," The Economic Record, The Economic Society of Australia, vol. 76(233), pages 183-201, June.
    4. Theodoros S. Papaspyrou, 2004. "EMU Strategies: Lessons from Past Experience in View of EU Enlargement," Working Papers 11, Bank of Greece.
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    More about this item

    Keywords

    Economic and Monetary Union (EMU); Exchange Rate Mechanism (ERM); Romania’s nominal convergence; Greek debt crisis; global financial crisis;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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