Comments on “The Maastricht Criteria on Price and Exchange Rate Stability and the ERM II,” by György Szapàry†
Author:
Susan M Schadler
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Language:
English
Print Publication Date:
18 Apr 2005
Keywords:
SEM; euro; exchange rate; country; CEE country; ERM II; EMU economy; acceding country; ECB paper; Exchange rates; Inflation; Exchange rate arrangements; Monetary unions; Exchange rate stability; Central and Eastern Europe; Europe; Baltics; Western Europe; Global

Abstract

The paper gives an excellent overview of the issues involved in the participation in the Exchange Rate Mechanism II (ERM II). In my remarks, I would like to discuss the following four questions: (1) Is there a conflict between exchange rate stability and price stability within the ERM II for accession countries, considering that these countries are catching-up economies? (2) What are the main benefits and risks of ERM II participation? (3) What considerations should be taken into account in deciding the appropriate timing for entry into the ERM II? (4) What is the optimal length of stay in the ERM II?

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Cover Euro Adoption in Central and Eastern Europe
Euro Adoption in Central and Eastern Europe
Opportunities and Challenges
ISBN:
9781589063709
Publication Date:
18 Apr 2005
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781589063709.072
Pages:
214
Front Matter
I Introduction
Part I Real Convergence and Euro Adoption
Part II Role of Monetary Independence in the Accession Countries
Part III Preconditions for Successful Euro Adoption: Fiscal Policy and Labor Markets
Part IV Preconditions for Successful Euro Adoption: Financial Markets and Macro Frameworks
Part V Strategies for Euro Adoption: Key Considerations
Back Matter

  • Kovàcs, Mihàly A., 2004, “Disentangling the Balassa-Samuelson Effect in CEC5 Countries in the Prospect of EMU Enlargement,” in Monetary Strategies for Joining the Euro, ed. by György Szapàry and Jürgen von Hagen (Cheltenham: Edward Elgar).

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  • Von Hagen, Jürgen, and Jizhong Zhou, 2004, “Exchange Rate Policies on the Last Stretch,” in Monetary Strategies for Joining the Euro, ed. by György Szapàry and Jürgen von Hagen (Cheltenham: Edward Elgar).

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