This paper proposes a new monetary policy framework for effectively navigating the path to adopting the euro. The … volatility to differentials over the euro zone in both inflation (target variable) and interest rate (instrument variable) is … proposed. The model is empirically tested for the Czech Republic, Poland and Hungary, the selected new Member States of the EU …

countries aspiring for EU and euro area membership. The goal of this paper is to consolidate a variety of theoretical views on …