The aim of this study is to assess the robustness of a full-fledged, integrated Economic and Monetary Union, under the hypothesis of a foreseeable crisis scenario. An empirical econometric model is designed, which captures from a behavioural perspective the relationship between the...

This work examines the political economy of exchange-rate policies in the eastward expansion of the eurozone. Analysis shows that prospective members of the EMU are likely to pass on some costs of convergence to the current EMU members. The mechanism is an altered exchange-rate policy that...