Alignment to the eurosystem: some findings from a VAR approach for selected CEE countries

The paper focuses on the monetary transmission process in selected Central and Eastern European Economies assuming their future accession to the Euro Area. A sufficient degree of homogeneity between these countries and the Euro Area with respect to economic environment and the reaction to macroeconomic shocks is necessary before an adoption of the common currency - i.e., the abandonment of the own monetary policy - is reasonable. Apply a vector autoregression approach allowing for the restricted data basis. By the analysis of impulse-responses, we provide some empirical evidence that in several potential new member states a certain level of convergence has already taken place.