IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/28754.html
   My bibliography  Save this paper

Exchange rate arrangements in EU accession countries: what are the options?

Author

Listed:
  • Meade, Ellen E.
  • Müller-Plantenberg, Nikolas
  • Pisani, Massimiliano

Abstract

Several countries in eastern Europe may accede to the European Union in about two years time, making them candidates to join Europe's single currency from 2006. Some well-known economists have advocated that countries in eastern Europe adopt the euro now either unilaterally or by prior arrangement with the EU. Such official currency substitution is typically termed ''dollarisation'' or ''euroisation'', and is the most extreme form of a hard peg currency regime. This paper brings together perspectives from a conference ''Dollarisation and Euroisation: Viable Policy Options?'' held at the LSE in May 2002. We discuss a number of issues associated with dollarisation or euroisation, including: the credibility of the monetary regime, the implications for domestic inflation, the importance of other macroeconomic policies, the reversibility of hard peg currency regimes, the outlook of the reserve currency issuer, and the broader context in which dollarisation or euroisation is pursued. Finally, we address some particular issues associated with euroisation for EU accession countries. Euroisation prior to EU accession may help to forestall a speculative attack, but it must be implemented in a way that is consistent with the Maastricht Treaty and does not impede progress toward EMU membership.

Suggested Citation

  • Meade, Ellen E. & Müller-Plantenberg, Nikolas & Pisani, Massimiliano, 2002. "Exchange rate arrangements in EU accession countries: what are the options?," LSE Research Online Documents on Economics 28754, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:28754
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/28754/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Antonín Rusek, 2005. "Financial Integration and the New EU Member Countries: Challenges and Dilemmas," Prague Economic Papers, Prague University of Economics and Business, vol. 2005(1), pages 17-32.
    2. Marko Malovic & Malisa Djukic & Srdjan Redzepagic, 2011. "Maastricht Criteria at the Age of 18: Are They Converging, Which Party and to What End?," Book Chapters, in: Mirjana Radovic Markovic & Srdjan Redzepagic & João Sousa Andrade & Paulino Teixeira (ed.), Serbia and the European Union: Economic Lessons from the New Member States, edition 1, volume 1, chapter 1, pages 11-26, Institute of Economic Sciences.
    3. Martina Horníková & Jaromír Hurník & Viktor Kotlán, 2005. "Spontaneous Euroization in the Czech Republic (is it a problem and why not?)," Prague Economic Papers, Prague University of Economics and Business, vol. 2005(2), pages 99-108.

    More about this item

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:28754. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.