EXCHANGE RATE MECHANISM (ERM 2): ESTONIA CASE STUDY

Tomislav Coric () and Maja Mesic ()
Additional contact information
Tomislav Coric: University of Zagreb

Economic Thought and Practice, 2012, vol. 21, issue 2, 621-638

Abstract: Exchange rate mechanism 2 (ERM 2) may be considered as the final stage in the implementation of optimal currency area theory. Successful participation in ERM 2 and the possibility to become a Euro zone member are closely connected to fulfilment of nominal and real convergence criteria. ERM 2 phase in Estonia is characterized by low interest rates, fiscal and exchange rate stability, but relatively high inflation. The analysis of economic indicators shows real convergence while participating in the ERM 2, which is similar to other participant countries. However, country’s economic growth is followed by intensive growth of external debt.

Keywords: ERM 2; Estonia; convergence (search for similar items in EconPapers)
JEL-codes: E58 G15 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hrcak.srce.hr/clanak/138620 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:avo:emipdu:v:21:y:2012:i:2:p:621-638

Ordering information: This journal article can be ordered from
Economic Thought and Practice, University of Dubrovnik, Branitelja Dubrovnika 29, 20000 Dubrovnik
https://emip.unidu.hr/

Access Statistics for this article

Economic Thought and Practice is currently edited by Nebojsa Stojcic

More articles in Economic Thought and Practice from Department of Economics and Business, University of Dubrovnik Contact information at EDIRC.
Bibliographic data for series maintained by Nebojsa Stojcic ().