Rozšiřování eurozóny: některá rizika pro dohánějící země

Eurozone enlargement: some risks for catching-up countries

Stanislava Janáčková

Politická ekonomie, 2002, vol. 2002, issue 6

Abstract: Accession countries are bound by EU rules to enter the eurozone after they have fulfilled the Maastricht criteria. Yet for many years, the eurozone will not constitute an optimum currency area for the new members. There are additional risks connected with low relative economic levels - as well as low relative price levels - of the new candidates. Catch-up will require fast productivity growth and will entail inflation rates well above present eurozone targets. The shares of the new countries in the HCPI index will be relatively low but in sum, and together with present eurozone members with higher-than-average inflation, they could pose a threat for the ECB low-inflation policy. Restrictive steps by the ECB would, in turn, slow down growth in the new countries. For this reason, adoption of the euro should not be undertaken too hastily, without regard for the needs of the catch-up process.

Keywords: monetary policy; Balassa-Samuelson effect; nominal and real convergence; optimum currency area; eurozone (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations:

Downloads: (external link)
http://polek.vse.cz/doi/10.18267/j.polek.385.html (text/html)
free of charge

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:prg:jnlpol:v:2002:y:2002:i:6:id:385

Ordering information: This journal article can be ordered from
Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3
http://polek.vse.cz

DOI: 10.18267/j.polek.385

Access Statistics for this article

Politická ekonomie is currently edited by Jiřina Bulisová

More articles in Politická ekonomie from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().