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EU Enlargement, ERM II and Lessons from the Southern European countries

Author

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  • Heather D. Gibson

    (Economic Research Department, Bank of Greece)

  • Euclid Tsakalotos

    (Athens University of Economics and Business)

Abstract

The purpose of this paper is to examine the experience of convergence with an exchange rate target in the southern European economies (SEEs). We argue that their experience has much to teach new and prospective EU members. We discuss the similarities of the SEEs and the new/prospective EU members in order to establish the relevance of the experience of the former for the latter. We then go on to offer evidence on the experience of SEEs with capital flows and speculative crises in the run-up to EMU membership. We discuss the implications of these results for the institutional structure of ERM II and conclude by discussing policy options available to the new/prospective members in the light of the previous analysis.

Suggested Citation

  • Heather D. Gibson & Euclid Tsakalotos, 2005. "EU Enlargement, ERM II and Lessons from the Southern European countries," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 3(1), pages 41-78.
    • Handle: RePEc:seb:journl:v:3:y:2005:i:1:p:41-78
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    References listed on IDEAS

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    Cited by:

    1. Tassos Anastasatos & Constantina Manou, 2008. "Speculative Attacks on the Drachma and the Changeover to the Euro," Economic Bulletin, Bank of Greece, issue 31, pages 49-77, November.
    2. Heather D. Gibson & Thomas Vlassopoulo, 2007. "Capital Folws, capital account liberalisation and the southern Mediterranean countries," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 60(241), pages 137-165.
    3. Heather D. Gibson & Nicholas T. Tsaveas & Thomas Vlassopoulos, 2006. "Capital Flows, Capital Account Liberalisation and the Mediterranean Countries," Working Papers 33, Bank of Greece.

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    More about this item

    Keywords

    capital flows; southern European economies; Accession countries and EU membership;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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