Naslov
Convergence in the monetary union as a precondition of well functioning: the case of the EU

Autori
Grgić, Mato ; Bilas, Vlatka ; Franc, Sanja

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

Izvornik
The Global Business & Economics Anthology / Demetri Kantarelis - : Business & Economics Society International (B&ESI), 2010, 138-147

Skup
2010 Business & Economics Society International Conference

Mjesto i datum
Atena, Grčka, 13.07.2010. - 15.07.2010

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
monetary union; monetary policy; convergence; E(M)U

Sažetak
Creating a monetary union means that member states lose their autonomy in implementing an economic policy. They can no longer modify the exchange rate and use it as the instrument of economic policy for improving competitiveness. It is generally accepted that if there is a high degree of mutual trade and high level of labor mobility between certain groups of countries, and if economic impacts that countries face are closely related, then regional units can have more benefits from joining a monetary union. If there is a fiscal system for transferring funds into regions that were affected by an impact, benefits from joining a monetary union could be even larger. This paper analyses potential benefits and costs of entering a monetary union with a special focus on the E(M)U. The most serious problem of monetary union enlargement is the lack of convergence, which causes significant risks during the transition towards joining the union. Adequate level of convergence is needed in order to be able to lead mutual monetary policy in a way that fits all member countries.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA