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EU Enlargement and the EMU

  • Michelis, Leo

    ()

    (Ryerson University)

  • Koukouritakis, Minoas

    (University of Crete)

This paper investigates empirically the extent to which the ten new EU countries are ready to join the European Monetary Union (EMU). Using France and Germany as a benchmark, we assess the prospects of successful EMU participation based on common trends analysis of the nominal convergence criteria as well as on real exchange rates and real per capita GDPs. The empirical results indicate that the new EU countries are partially ready to join the eurozone, and need further adjustments in their government policies to be fully prepared for joining the EMU.

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Article provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.

Volume (Year): 22 (2007)
Issue (Month): ()
Pages: 156-180

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Handle: RePEc:ris:integr:0390
Contact details of provider: Web page: http://www.e-jei.org/

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