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Intereconomics

, Volume 39, Issue 5, pp 236–241 | Cite as

Euro adoption and growth in Central Europe: Managing a political process

  • Michael Bolle
  • Thomas Meyer
Forum Eastward Enlargement of the Euro Zone

Keywords

European Union Total Factor Productivity Risk Premium Capital Flow Monetary Union 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. 1.
    The new members from Central Europe are the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia.Google Scholar
  2. 2.
    Robert Mundell: A Theory of Optimum Currency Areas, in: American Economic Review, Vol. 51, 1961, pp. 657–665.Google Scholar
  3. 3.
    Peter B. Kenen: The Theory of Optimum Currency Areas: An Eclectic View, in: R. A. Mundell and A. K. Swoboda (eds.): Monetary Problems of the International Economy, Chicago 1969, University of Chicago Press.Google Scholar
  4. 4.
    Ronald McKinnon: Optimum Currency Areas, in: American Economic Review, Vol. 53, 1963, pp. 207–222.Google Scholar
  5. 5.
    See for instance Jeffey A. Frankel and Andrew K. Rose: The Endogenity of the Optimum Currency Area Criteria, in: The Economic Journal, Vol. 108, 1998, pp. 1009–1025; as well as Michael Bolle and Michael Neugart: How will the Euro shape European Economies, paper presented at the 4th Conference on Macroeconomic Analysis, University of Crete, 2000.Google Scholar
  6. 6.
    A recent report by the Polish National Bank states that euro adoption should impose wage discipline and enhance wage flexibility: National Bank of Poland: A Report on the Costs and Benefits of Poland’s Adoption of the Euro, Drukarnia NBP, Warsaw 2004, edited by Jakub Borowski.Google Scholar
  7. 9.
    This is due to the Balassa-Samuelson effect, which is estimated to add 1–2 points to consumer-price inflation in Central Europe: Mihály A. Kovács et al.: On the Estimated Size of the Balassa-Samuelson Effect in Five Central and Eastern European Countries, NBH Working Paper, No. 5, 2002.Google Scholar
  8. 10.
    Cf William Easterly and Ross Levine: It’s Not Factor Accumulation: Stylized Facts and Growth Models, in: World Bank Economic Review, 2004 (forthcoming).Google Scholar
  9. 13.
    Leslie Lipschitz, Timothy Lane and Alex Mourmouras: Capital Flows to Transition Countries: Master or Servant?, IMF Working Paper, WP/02/11, 2002.Google Scholar
  10. 14.
    Jeffey A. Frankel and Andrew K. Rose: Estimating the Effect of Currency Unions on Trade and Output, NBER Working Paper, No. 7857, 2000.Google Scholar
  11. 16.
    See also Susan Schadler: Charting a Course Toward Successful Euro Adoption, in: Finance & Development, June 2004, pp. 29–33.Google Scholar
  12. 17.
    Cf George Clarke, Robert Cull, Maria Soledad Martinez Peria and Susana M. Sánchez: Foreign Bank Entry: Experience, Implications for Developing Countries, and Agenda for further Research, in: Background Paper for the World Development Report 2002.Google Scholar
  13. 18.
    Helmut Wagner: Pitfalls in the European Enlargement Process. Financial Instability and Real Divergence, in: Deutsche Bundesbank Economic Research Centre: Discussion Paper No. 6, 2002, pp. 18–24.Google Scholar
  14. 19.
    Cf Sjef Ederveen, Henri L. F. de Groot and Richard Nahuis: Fertile Soil for Structural Funds?, in: Tinbergen Institute Discussion Paper, 2002, No. 096/3.Google Scholar
  15. 20.
    In a later article, Robert Mundell picks up this argument. Cf. Robert Mundell: Uncommon Arguments for Common Currencies”, in: H. Johnson, A. Swoboda (eds.): The Economics of Common Currencies, London 1973, pp. 114–132.Google Scholar
  16. 24.
    See for instance Susan Schadler, op. cit. Charting a Course Toward Successful Euro Adoption, in: Finance & Development, June 2004, pp. 29–33.Google Scholar
  17. 25.
    Cf Leslie Lipschitz, Timothy Lane and Alex Mourmouras: Real Convergence, Capital Flows, and Monetary Policy: Notes on the European Transition Countries, IMF, mimeo 2004.Google Scholar

Copyright information

© HWWA and Springer-Verlag 2004

Authors and Affiliations

  • Michael Bolle
    • 1
  • Thomas Meyer
    • 1
  1. 1.Jean Monnet Centre of Excellence for European IntegrationFree University of BerlinGermany

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