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Euro Adoption – The Illusion Of The Monetary Integration Of Romania

Author

Listed:
  • Cristina Duhnea

    (Ovidius University of Constanta, Romania)

  • Silvia Ghita-Mitrescu

    (Ovidius University of Constanta, Romania)

  • Diane Paula Corina Vancea

    (Ovidius University of Constanta, Romania)

Abstract

The accession to the European Union for Central and Eastern Europe countries involved their requirement to start the process of the European Monetary Union integration. The desire to enjoy the benefits of EU membership has made both the 10 countries that joined EU in 2004 and Romania and Bulgaria which became EU member in 2007 to engage on the path to join the European single currency endeavoring to meet not only the nominal convergence criteria but also real convergence. This paper makes an analysis of the Romania's capacity to achieve the nominal convergence criteria in the current context. The change of the financial and economic conditions due to the crisis that spread worldwide during 2007 - 2008 changed the issue from "Romania can fulfill the nominal convergence criteria?” in "Is it advisable for Romania to adopt the Euro, given the uncertainty clouds over the currency's future?” The analysis is made by considering the comparative situation of other countries that are in the process of joining the single currency. The objective of the research undertaken in this paper is to investigate Romania's capacity to approach the nominal convergence criteria and so realistic goal of joining the Euro it is.

Suggested Citation

  • Cristina Duhnea & Silvia Ghita-Mitrescu & Diane Paula Corina Vancea, 2012. "Euro Adoption – The Illusion Of The Monetary Integration Of Romania," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 4(2), pages 152-163, June.
    • Handle: RePEc:jes:wpaper:y:2012:v:4:i:2:p:152-163
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    File URL: http://ceswp.uaic.ro/articles/CESWP2012_IV2_DUH.pdf
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    References listed on IDEAS

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    1. Iulia Lupu & Camelia Milea & Alina Georgeta Glod & Adina Criste, 2009. "Development of Nominal Convergence Indicators in New Member States of European Union under the Challenges of Economic and Financial Crisis," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 1(1), pages 40-49, September.
    2. Paul Grauwe, 1996. "The economics of convergence: Towards monetary union in Europe," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 132(1), pages 1-27, March.
    3. Ramona Orăştean & Silvia Mărginean, 2010. "Nominal Convergence: The Case Of Romania," Romanian Economic Business Review, Romanian-American University, vol. 5(3), pages 167-176, September.
    4. De Grauwe, Paul, 1996. "Monetary union and convergence economics," European Economic Review, Elsevier, vol. 40(3-5), pages 1091-1101, April.
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    Cited by:

    1. Georgiana-Loredana Schipor, 2020. "Euro Adoption in Romania: An Exploration of Convergence Criteria," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 190-199, December.

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    More about this item

    Keywords

    Euro; European Monetary Union; Romania; nominal convergence; convergence criteria; Euro adoption Romania;
    All these keywords.

    JEL classification:

    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • G01 - Financial Economics - - General - - - Financial Crises
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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