Economics at your fingertips  


Cristian Paun ()

Review of Social and Economic Issues, 2016, vol. 1, issue 3, 76-94

Abstract: In accordance with Treaties and assumed obligations, Romania should adopt Euro when it is “ready”. As EU-member, there is no possibility to avoid the adoption of Euro, only to postpone on an indefinite time this decision. The decision about the introduction of Euro remains a political one. Romania revised for many times the schedule on this specific matter. Euro, as Romanian Leu, is a fiat currency with legal money characteristics, serving for the same redistributive purpose. Euro Area has the same imperfections as local monetary arrangement. The paper will be focused on the fulfilment of pre-requisites (nominal and real convergence), the existing gap between Romania and Eurozone and the main arguments for adoption and against the adoption of single currency. The central idea of the paper is concentrated around the argument that it is irrelevant to discuss about the advantage of a specific tool for public policy that is the currency, taking into consideration that this tool (the fiat currency) is used to arbitrarily redistribution of resources among economic operators. Without a proper theory of money, all theories defining monetary integration (optimal currency area - OCA theory, convergence theories, Balassa-Samuelson effect) are submitted to be wrong and unrealistic. Therefore, under fiat-money conditions, the adoption of a single currency or not is impossible to be properly analysed and defined.

Keywords: Euro; nominal convergence; real convergence; optimal currency area; integration. (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (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:

Access Statistics for this article

More articles in Review of Social and Economic Issues from Romanian-American University Contact information at EDIRC.
Bibliographic data for series maintained by Alex Tabusca ().

Page updated 2021-03-28
Handle: RePEc:rau:rseijr:v:1:y:2016:i:3:p:76-94