Adoption of the euro: Why is the Czech approach cautious?

Katerina Smidkova

Atlantic Economic Journal, 2004, vol. 32, issue 4, 302-311

Abstract: When published, the Czech Euro-area Accession Strategy signalled a rather cautious approach to adopting the euro in comparison to the intentions of other EU acceding countries. The euro adoption was scheduled around 2010 and the ERM II was viewed only as a waiting room. The Czech strategy was attuned to specific features of the Czech economy. Although inflation and nominal interest rates converged to the EMU levels before EU entry, large fiscal deficits and the need for significant fiscal reform did not make it possible to meet the Maastrich criteria soon. Moreover, real convergence was viewed as a priority for the forthcoming years and, consequently, the strategy was aimed at maintaining nominal flexibility in order to cushion consequences of price and wage rigidities during the peak period of the catch-up process. Copyright International Atlantic Economic Society 2004

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1007/BF02304235 (text/html)
Access to full text is restricted to subscribers.

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:kap:atlecj:v:32:y:2004:i:4:p:302-311

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11293/PS2

DOI: 10.1007/BF02304235

Access Statistics for this article

Atlantic Economic Journal is currently edited by Kathleen S. Virgo

More articles in Atlantic Economic Journal from Springer, International Atlantic Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().