Abstract

The De Grauwe and Schnabl paper has two parts. The first part focuses on the reasons why the enlargement countries are so (justifiably) eager to join the euro zone. The second part is an empirical exercise. It seeks to distill from the experience of the enlargement countries the advantages they have received in terms of inflation control and growth stimulus from pursuing fixed exchange rate regimes, in so far as they have been able to do so.