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The Costs and Benefits of Euro-sation in Central-Eastern Europe Before or Instead of EMU Membership

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  • D. Mario Nuti

Abstract

Countries unable or unwilling to join a Monetary Union can partly replicate membership effects through either a Currency Board or formal replacement of the domestic currency by the currency of the Union. Schemes of this kind have been introduced recently in Transition Economies. The net balance of costs and benefits involved, for the country and the common currency area, are shown to be an empirical question, depending on a number of conditions and primarily on the degree of monetary, real, and institutional convergence already achieved beforehand. Positive net advantages may derive from dollar/Euro-isation but should not be taken for granted.

Suggested Citation

  • D. Mario Nuti, 2000. "The Costs and Benefits of Euro-sation in Central-Eastern Europe Before or Instead of EMU Membership," William Davidson Institute Working Papers Series 340, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2000-340
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    File URL: http://deepblue.lib.umich.edu/bitstream/2027.42/39724/3/wp340.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Jan Fidrmuc & Peter Huber, 2005. "AccessLab: Drawing Conclusions and Deriving Policy Implications," WIFO Studies, WIFO, number 25452, March.
    2. repec:bla:jcmkts:v:48:y:2010:i::p:1391-1408 is not listed on IDEAS
    3. George M. Von Furstenberg, 2002. "One Region, One Money?," The ANNALS of the American Academy of Political and Social Science, , vol. 579(1), pages 106-122, January.
    4. Ronald I. McKinnon, 2004. "Optimum Currency Areas and Key Currencies: Mundell I versus Mundell II," Journal of Common Market Studies, Wiley Blackwell, vol. 42(4), pages 689-715, November.
    5. Pieter van Foreest & Casper de Vries, 2003. "The Forex Regime and EMU Expansion," Open Economies Review, Springer, vol. 14(3), pages 285-298, July.
    6. Schweickert, Rainer, 2001. "Assessing the advantages of EMU-enlargement for the EU and the accession countries: a comparative indicator approach," Kiel Working Papers 1080, Kiel Institute for the World Economy (IfW Kiel).
    7. Lúcio Vinhas de Souza, 2002. "Integrated Monetary and Exchange Rate Frameworks," Tinbergen Institute Discussion Papers 02-054/2, Tinbergen Institute.
    8. Fabrizio Iacone & Renzo Orsi, 2002. "Exchange Rate Management and Inflation Targeting in the CEE Accession Countries," Eastward Enlargement of the Euro-zone Working Papers wp08, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Aug 2002.

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    Keywords

    Euro; monetary union; dollarisation; exchange rate regimes; convergence; transition;
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