Naslov
"Euroization" of the Currencies of Assocciation Countries: Potential Costs and Benefits

Autori
Stojanov, Dragoljub ; Kandžija, Vinko

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Theory and Practice of Transition and Accession to the EU : selected papers / IV. International Conference Economic System of European Union and Accession of the Republic of Croatia / Kandžija, Vinko ; Kumar, Andrej - Ljubljana : Ekonomska fakulteta Univerze v Ljubljani, 2004, 30-46

Skup
IV. International Conference "Economic System of European Union and Accession of the Republic of Croatia"

Mjesto i datum
Opatija, Hrvatska, 09.05.2003. - 10.05.2003

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Euroization; euro; ERM; EMU; currency board

Sažetak
A recent unofficial research performed in Bosnia and Herzegovina shows that majority of responded (79%) would like to see EURO as domestic currency as soon as possibly. B&H economy is an aid-driven economy, i.e. it is far from to be a self-sustainable economy. Republic of Croatia is economically much more advanced country. R.Croatia is closer on the way to become a member of EU. The accession countries have to follow Exchange rate mechanism (ERM II) for at least two years before joining EMU. During that period a country must reach the Maastricht criteria for monetary and fiscal convergence. The choice of strategy for EMU accession is one of the most important decisions facing the candidate countries. As regards monetary policy, this involves the choice of exchange rate regime before joining the ERM II. A major dilemma inside ERM II is the potential conflict between nominal convergence according to the Maastricht's criterion, and speed of real convergence between candidate countries and present members. Simply speaking, a candidate country need to appreciate a "trade off" between: faster nominal convergence and an output growth as expression of real convergence. at least in the short run. We argue: faster growth rates in less developed accession or pre-accession countries require more inflationary and accommodating monetary policy, in terms of monetary policy determined either by euroization or by currency board arrangement.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA