Cee Countries and Euro Adoption : A Costs-Benefits Analysis

The main objective of this paper is to analyse euro adoption in CEE counties from the perspective of the Optimum Currency Area (OCA) theory. The main characteristics of the OCA theory are assessed and the empirical studies focusing on this theme are surveyed. As the area of asymmetric shocks forms one of the most important themes of monetary unions in the framework of the OCA theory, the paper also discusses the economic policy instruments and the economic mechanisms ability to adjust to asymmetric shocks