scholarly journals Real Convergence in a Monetary Union

2017 ◽  
pp. 183-196
Author(s):  
Horst Tomann
Keyword(s):  
Monetary Union ◽  
Real Convergence

scholarly journals European Monetary Union as a stabilizing factor in the circumstances of economic crisis

Ekonomika ◽  
2020 ◽  
Vol 66 (4) ◽  
pp. 13-28
Author(s):  
Srećko Milačić ◽  
Zoran Simonović ◽  
Aleksandar Kostić
Keyword(s):  
Economic Crisis ◽  
Monetary Union ◽  
European Monetary Union ◽  
Financial Stability ◽  
Developed Countries ◽  
Point Of View ◽  
European Monetary ◽  
Real Convergence ◽  
New Institutions ◽  
The Developed Countries

The authors examine the problems the European Monetary Union in the circumstances of the global economic crisis. They especially elaborated the battle for the financial stability of the European Monetary Union. The authors problematize the interaction of the European Central Bank and national central banks, emphasizing the deficiencies in the coordination of fiscal and monetary policy. They investigated the reasons that require a cautious strategy when it comes to the admission of new member states into the European Monetary Union and in that sense the conditions for nominal and real convergence. The authors consider the management of the economic crisis and the introduction of new institutions with the task to stabilize the situation in the monetary field. They explored the problems of helping countries like Greece from the point of view of the developed countries relationship. The authors especially paid attention to the level of transparency in relation to their citizens when making decisions on certain aid giving issues. They have proposed solutions for getting out of the vicious circle and the need to redesign the European Monetary Union and in this context the problem of the stabilization of the euro in order for it to be competitive with the dollar.

scholarly journals Bulgaria in the Eurozone – Other Countries’ Experience and Comparisons

2021 ◽  
Vol 27 (2) ◽  
pp. 109-126
Keyword(s):  
Monetary Union ◽  
Economic Indicators ◽  
Actual Data ◽  
Banking Union ◽  
Baltic Countries ◽  
Real Convergence ◽  
European Economies

On July 10 2020 Bulgaria joined the preparatory mechanism for the Eurozone ERM II, but the opinions expressed are still divided. The author’s opinion is that in the debate for or against Bulgaria joining the Eurozone, the actual data provides the strongest arguments. Economic indicators and facts about five former socialist countries that are already in the Eurozone are presented in the paper. There are solid arguments in favor of joining in the analysis of the three Baltic countries – Estonia, Latvia and Lithuania, as well as Slovenia and Slovakia. These countries’ development as part of the monetary union and their economic indicators after this important step show their goal for real convergence with developed European economies. The author accepts two issues as especially important – what happens to inflation in these economies after joining the Eurozone and what the comparison concerning real convergence shows. Croatia, along with Bulgaria, has become a part of ERM II and the Banking Union, hence why it is also included in the analysis.

The Economics of European Monetary Integration: The Pros and Cons of EMU Membership

2020 ◽  
Author(s):  
Donato Masciandaro ◽  
Davide Romelli
Keyword(s):  
Interest Rates ◽  
Monetary Union ◽  
Capital Mobility ◽  
Monetary Integration ◽  
European Monetary ◽  
Global Crisis ◽  
Real Convergence ◽  
Pros And Cons ◽  
The Stability ◽  
Two Stages

The recent global crisis challenged the stability of the European monetary integration process. That process, which is closely linked to the evolution of the European Monetary Union (EMU), has gone through two stages: the Common Market era, which ran from 1958 until 1993, and the Monetary Union era, which started in 1994 and gained new impetus after the global crisis with the publication of the Four Presidents’ Report in December 2012. The aim of the EMU has been to exchange rates, inflation and interest rates in order to boost capital mobility and trade, thereby promoting the growth of member countries. Thus far, the data shows that there has been nominal convergence of inflation and interest rates, while real convergence of per capita income has not occurred among the original euro area participants.

Experience of the European Economic and Monetary Union and Its Implications for the Eurasian Integration Project

2016 ◽  
Vol 4 (3) ◽  
pp. 60-67
Author(s):  
Родичева ◽  
Yulia Rodicheva
Keyword(s):  
Monetary Union ◽  
Financial Integration ◽  
Lessons Learned ◽  
Economic And Monetary Union ◽  
Eurasian Economic Union ◽  
Real Convergence ◽  
National Currencies ◽  
Economic Union ◽  
National Economies ◽  
Integration Project

The article is devoted to the prospects of the monetary union creation on the basis of the Eurasian Economic Union (EAEU), analyzed with consideration of the lessons learned from the experience of the Economic and Monetary Union of the European Union (EMU). The author comes to the unambiguous conclusion: a monetary union should be firmly based on successively passed preceding levels of integration. Real convergence of national economies alongside with creation of common financial market is crucial for completion of the Eurasian integration in form of an economic union. Development towards the monetary union would require implicit adherence to the “four freedoms” principle as well as scrupulous coordination of fiscal policies. Nowadays, introduction of a single currency can’t be seen as top priority of the monetary and financial integration within the framework of the EAEU: the emphasis is put on coordination of exchange rate policies and broader use of national currencies in mutual settlements.

scholarly journals Nominal and Real Convergence as a Determinant for Joining the European Monetary Union

ECONOMICS ◽  
2017 ◽  
Vol 5 (1) ◽  
pp. 52-71
Author(s):  
Merim Kasumović ◽  
Erna Heric
Keyword(s):  
Central Bank ◽  
Monetary Union ◽  
European Monetary Union ◽  
European Central Bank ◽  
Financial Integration ◽  
Convergence Criteria ◽  
European Monetary ◽  
European Central ◽  
Real Convergence ◽  
The Stability

Summary The thematic framework of this work is the nominal and real convergence as a determinant for joining the European monetary union. The focus of the work is to prove that realising the criteria of the convergence affects the stability of the European monetary union, that is, that the cause of destabilisation is exactly the fact that certain member nations have not realised the assigned convergence criteria. The financial integration is an important question because it contributes to the economic growth affecting free exchange with the goal of a more efficient allocation of capital; it is the result of the economic theory and the empirical research. Introducing the Euro as a single payment method while losing the monetary sovereignty of the countries which have accepted it is the main reason for forming the European Central Bank. The mission of the European Central Bank is to define and conduct a single monetary policy within the Eurozone. Because of the already mentioned facts, the challenges of conducting the fiscal policy within the Eurozone as well as the key aspects of the monetary unification of Europe have been analysed. The results of this analysis should point out the stability of the EMU by the convergence degree of the member nations from a single monetary area.

scholarly journals MONETARY CHALLENGES OF EMERGING EUROPEAN ECONOMIES TOWARDS THE EURO ZONE

TEME ◽  
2020 ◽  
pp. 883
Author(s):  
Emilija Beker Pucar
Keyword(s):  
Exchange Rate ◽  
Monetary Union ◽  
Capital Inflows ◽  
Smooth Transition ◽  
Target Zone ◽  
Waiting Room ◽  
Euro Zone ◽  
Real Convergence ◽  
Floating Exchange Rate ◽  
European Economies

The paper aims to highlight the main difficulties on the monetary path towards the euro zone experienced by Emerging Europe. Emerging European Economies (EEEs), EU members, adopted either double shift or smooth transition monetary approach towards the euro zone. Double shift assumes changes from floating exchange rate regimes (ERRs) to the ERM II target zone and, finally, monetary union as a rigid ERR. The smooth transition is practiced by economies with mainly rigid ERRs before the ERM II entrance and, at the end, again rigid ERR of a monetary union. Despite chosen monetary path towards the euro zone, crucial difficulties or aggravating factors could be identified in the form of real exchange rate appreciation due to productivity growth or capital inflows. A reconciliation of inflation and exchange rate target zone is extremely complex, at the same time striving not to jeopardize the real convergence. What is stressed here is the vicious cycle between real and nominal convergence as the reason why the ERM II target should be regarded as a “waiting room“ not as a “training room“ in the pre-EMU phase. 

scholarly journals European monetary union and risks for real convergence

2004 ◽  
Vol 52 (4) ◽  
pp. 433-447 ◽  
Author(s):  
Kamil Janáček ◽  
Stanislava Janáčková
Keyword(s):  
Monetary Union ◽  
European Monetary Union ◽  
European Monetary ◽  
Real Convergence

scholarly journals The future of the Economic and Monetary Union to 2025 and beyond: the need for convergence

European View ◽  
2018 ◽  
Vol 17 (2) ◽  
pp. 116-125
Author(s):  
Kaloyan Dimitrov Simeonov
Keyword(s):  
Financial Crisis ◽  
Monetary Union ◽  
Regulatory Reform ◽  
Maastricht Treaty ◽  
Economic And Monetary Union ◽  
Member States ◽  
Real Convergence ◽  
The Future ◽  
Economic And Financial Crisis

As set forth in the Maastricht Treaty, the objective of establishing the Economic and Monetary Union (EMU) was based mainly on the need to achieve nominal convergence. However, the global economic and financial crisis has since proved that the EMU architecture is not solid enough. Therefore, EU institutions and member states have developed and started to implement plans for the completion of the EMU. The main focus of these plans up to 2025 is on institutional and regulatory reform. However, more attention should be paid to other types of convergence: real convergence, social convergence, financial convergence, cyclical convergence and structural convergence. This would lead to sustainable and strong all-round convergence in the EMU. This article outlines recommendations for the completion and sustainable maintenance of the EMU, concentrating on social, financial and cyclical convergence.

scholarly journals Real Convergence in a Monetary Union

2007 ◽  
pp. 121-134
Author(s):  
Horst Tomann
Keyword(s):  
Monetary Union ◽  
Real Convergence

scholarly journals The process of nominal and real convergence under the conditions of monetary integration

Equilibrium ◽  
2009 ◽  
Vol 3 (2) ◽  
pp. 51-66
Author(s):  
Ilona Pietryka
Keyword(s):  
Financial Markets ◽  
Interest Rates ◽  
Monetary Union ◽  
Monetary Integration ◽  
Economic And Monetary Union ◽  
The European Union ◽  
Real Convergence ◽  
Production And Consumption ◽  
Maastricht Criteria ◽  
Means Of Production

The creation of the Economic and Monetary Union is the next stage of monetary integration. Due to differentiation between Member States of the European Union, expenses and profits of participation in Eurosystem are not spread similarly. The first part of this paper reviews the fulfillment of nominal Maastricht criteria (stability of public finances, prices, exchange rate and interest rates). The second part presents the state of real convergence between countries either belonging to or aspiring to European Economic and Monetary Union (flexibility of prices and salaries, mobility of means of production, integration of financial markets, openness of economy, diversification of production and consumption and similarity of economic disorders). Analyses are based on available statistical data and scientific research.

Sign in / Sign up

Export Citation Format

Share Document