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...

This paper assesses the correlation of supply and demand shocks between New Member States (NMS), including Romania, and the Eurozone. Using a structural VAR approach, we estimated the similarity between demand (both nominal and real) and supply shocks between NMS and the Eurozone, showing that...

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...