Exchange Rate Arrangements Prior to Euro Adoption

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Title:Exchange Rate Arrangements Prior to Euro Adoption
Creators:
Antal, Juraj
Holub, Tomáš
Journal or Publication Title:
AUCO Czech Economic Review, 1, 3, pp. 312-324
Uncontrolled Keywords:monetary integration, euro adoption, convergence criteria, ERM II

Abstract

This paper discusses the exchange rate policies in the three stages of the euro adoption process. In the first stage, i.e., after EU accession but before ERM II entry, the exchange rate becomes a matter of “common concern” according to the Treaty. The paper argues that in the modern conditions, this has no real meaning besides mutual consultations on macroeconomic policy issues. In the second stage, common concern becomes institutionalized under the ERM II mechanism. Its main advantages and risks are discussed, and the arguments for minimizing the length of this stage are presented. In the third step, the exchange rate stability criterion is assessed before the country is allowed to adopt the euro. The paper discusses the open issues in the interpretation of this criterion. Finally, the current state of the Czech euro adoption strategy is described.

Official URL: http://www.ceeol.com/aspx/issuedetails.aspx?issueid=D4F9AADE-5C65-4E11-80F4-D34C7C0CD667&articleid=F942D097-BFF1-4C37-9F75-3F3462946317

Title:Exchange Rate Arrangements Prior to Euro Adoption
Creators:
Antal, Juraj
Holub, Tomáš
Uncontrolled Keywords:monetary integration, euro adoption, convergence criteria, ERM II
Subjects:H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
H Social Sciences > HF Commerce
Divisions:Section of external journals > AUCO Czech Economic Review
Journal or Publication Title:AUCO Czech Economic Review
Volume:1
Number:3
Page Range:pp. 312-324
ISSN:1802-4696
Publisher:Charles University
Related URLs:
URLURL Type
http://auco.cuni.czPublisher
http://avi.lib.cas.cz/node/183Publisher
ID Code:4311
Item Type:Article
Deposited On:01 Jun 2009 18:32
Last Modified:01 Jun 2009 16:32

Citation

Antal, Juraj; Holub, Tomáš (2007) Exchange Rate Arrangements Prior to Euro Adoption. AUCO Czech Economic Review, 1 (3). pp. 312-324. ISSN 1802-4696

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