analysis suggests that, given EMU’s present political-economic set-up, i) the bail-out was unavoidable, ii) the lengthy process … with a future moral hazard problem. Based on our analysis, we suggest that the EMU’s institutional design could be improved … negotiation processes as well as the conditions and parameters on which the scope and limits of fiscal redistribution in EMU …

the Economic and Monetary Union (EMU). When the EMU was designed, it was hoped that it would induce nominal convergence … investment rates. However, once within the EMU, all three countries experienced persistently higher inflation rates, which may be … consistent with the convergence of price levels, instead of inflation. While all the above phenomena can be related to the EMU …

This paper focuses on roots of strain in the European Monetary Union (EMU). It argues that there is need for a thorough …-connectedness. Moreover, the EMU was sub-optimal from its debut and competitiveness gaps did not diminish against the backdrop of its … inadequate policy and institutional design. The euro zone crisis is not related to fiscal negligence only; over-borrowing by the …

The paper examines theoretical literature, recent EMU accession examples, and current CEECs performance in search of …

Euro is too risky for banking and real sectors. Slower process of joining EMU would hamper credibility of macroeconomic … European Monetary Union. It is argued that due to legal and political considerations Poland may not opt out from EMU … productivity gains in Poland. Finally, the accession to EMU should follow promptly the accession to EU. Unilateral introduction of …

The dispersion in current account balances among countries in the euro area has widened markedly over the past decade …-and-a-half, and especially since 1999. We decompose current account positions for euro area countries into intra-euro-area balances … and extra-euroarea balances and examine the determinants of these balances. Regarding intra-euro-area balances, we present …

The paper examines economic and political challenges of joining the euro area in the case of Poland. After reviewing … the economic developments since the pre-accession period and assessing economic convergence with the euro area the paper … focuses on the political and institutional challenges of acceding to the euro zone. Special attention is given to the effect …

The paper deals with the choice of the nominal euro conversion rates for the acceding countries upon their accession to … EMU. The paper reviews theoretical models of equilibrium exchange rates as well as discusses their interpretation and the … of 'optimal' euro conversion rates is quiet wide and other issues must be taken into account. In particular, a smooth …

euro, i.e. the Czech Republic, Poland and Hungary. Stability tests of the input variables affirm prudent inclusion of these … monetary policies among these euro-candidates. The Czech inflation targeting is forwardlooking relying on a sensible balance …