THE COSTS AND BENEFITS OF ROMANIA'S ADERATION TO THE EURO ZONE AND ADOPTION OF THE UNIQUE CURRENCY

Apetri Anisoara Niculina and Hlaciuc Ana Maria

Annals of Faculty of Economics, 2010, vol. 1, issue 2, 351-357

Abstract: The accession to the Economic and Monetary Union, though not a criterion of accessing the European Union, involves the compliance with the convergence criteria of Maastricht: stability of the exchange rate, of interest rates, of the inflation, of the external debt and budgetary deficit. Even if the joining of the EMU represents therefore no conditioning of accessing the EU as a full rights member and, maybe, no priority of the candidate countries, the consequences of this option must be seriously put into balance, taking into account the most the fragile macro-economical stability of the pretending countries, such as Romania. A major regime change, as the monetary unification, is clearly made when there are strong motivations given by benefits, but such a change involves costs, risks and difficulties. The adoption of the unique currency in an unsuitable time can have more bad consequences than positive ones.

Keywords: Economic and Monetary Union; nominal convergence; real convergence; money (search for similar items in EconPapers)
JEL-codes: E51 (search for similar items in EconPapers)
Date: 2010
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://anale.steconomiceuoradea.ro/volume/2010/n2/053.pdf (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:ora:journl:v:1:y:2010:i:2:p:351-357

Access Statistics for this article

More articles in Annals of Faculty of Economics from University of Oradea, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Catalin ZMOLE ( this e-mail address is bad, please contact ).