This paper assesses the degree of readiness of New Member States (NMS) of the EU, including Romania, to adopt euro, mainly based on an optimal currency area (OCA) criterium. Using three consensus measures of output gap based on revisions of the estimated output gaps computed by 5 filtering...

Based on optimal currency area (OCA) criteria, this paper is assessing the real convergence process in Romania from the Euro adoption perspective. Our findings suggest that the correlation of the business cycle in the case of Romania is one of the lowest among NMS, and the demand shocks are...