EMU entry strategies for the new member states

Schnabl, Gunther

doi:10.1007/bf03031781

Cited by 18 publications

(4 citation statements)

References 7 publications

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“…15 The problem lies in the fact that the combination of convergence criteria creates a constraint affecting the compatibility of inflation targeting with the exchange rate convergence criterion embodied in the ERM2 arrangement. Arguments on this issue were voiced from various angles by Natalucci and Ravenna (2002), Buiter (2004), and de Grauwe and Schnabl (2004), among others. New EU members who currently operate under flexible exchange rate regimes and pursue inflation targeting may be confronted with an unpleasant policy shift in favor of exchange rate targeting when entering ERM2.…”

Section: Nominal-monetary Convergencementioning

confidence: 99%

Pilgrims to the Eurozone: How Far, How Fast?

2005

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In our analysis, we re-examine the nominal and real convergence of all recent 10 European Union (EU) members to EU standards. Testing for monetary convergence has significant implications for interim optimal exchange rate and monetary policies before a formal and permanent link to the euro, while real convergence is the ultimate objective of economic integration. Novel features of the paper include broader measures of real convergence in both euro as well as local currencies, an examination of inflation and interest rate convergence with respect to the Maastricht benchmarks, and employment of more appropriate tests of convergence allowing for structural breaks. The results indicate slow but steady per-capita real income convergence towards EU standards. On the other hand, evidence indicates significant strong inflation and interest rate convergence. Policy implications of the paper are also discussed. #

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Section: Nominal-monetary Convergencementioning

confidence: 99%

Pilgrims to the Eurozone: How Far, How Fast?

2005

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“…The recent enlargement of the European Union by 11 countries mostly Central and Eastern European (CCE) countries (Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Malta, Latvia, Lithuania, Poland, Slovenia and Slovakia) heralds the enlargement of the EMU. Although some CCE countries are still outside the union, the new member states are obliged to join the EMU as soon as they fulfill the Maastricht criteria for monetary, fiscal and exchange rate convergence (Grauwe and Schnabl, 2011). One key aspect of the increased financial integration between old and new EU members has been the large capital inflows from older to newer economies.…”

Section: New Eu Membersmentioning

confidence: 99%

International income risk-sharing and the global financial crisis of 2008–2009

Balli

Basher

Balli

2013

Journal of Banking & Finance

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We examine the impact of the global financial crisis on the degree of international income and consumption risk-sharing among industrial economies using returns on cross-border portfolio holdings (e.g., debt, equity, FDI). We split the returns from the net foreign holdings as receipts (inflows) and payments (outflows) to investigate which of the two sides exhibited the greater resilience for income risk-sharing during the recent crisis. First, we find that debt delivered better risk-sharing than equity, mainly reflecting the deficit deterioration in EMU countries during the post-crisis period. FDI, by contrast, did not correspond to noticeable risk diversification. Second, separating output shocks into positive and negative components reveals that debt holding receipts (equity liability payments) performed better under negative (positive) realizations of the shock variable. Third, the unwinding of capital flows resulted in a sharp fall in income dis-smoothing via the debt liability channel in the new EU countries. JEL Codes: F36.Keywords: Financial crisis, international portfolio diversification, income smoothing. * We would like to thank an anonymous referee for constructive comments and Megan Foster for help with proofreading. The views expressed here are those of the authors and do not necessarily reflect the official view of the Qatar Central Bank. The errors that remain are solely ours.

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“… 18 This point is controversial. Others (see, for example, De Grauwe and Schnabl 2004) suggest that EMU membership would strengthen weak capital markets, reduce interest rates, and reinforce the already high degree of trade integration. …”

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confidence: 99%

Divide and Conquer: The European Union Enlargement's Successful Conclusion?1

Ellison

2006

Int Studies Review

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EMU entry strategies for the new member states

Cited by 18 publications

References 7 publications

Pilgrims to the Eurozone: How Far, How Fast?

Pilgrims to the Eurozone: How Far, How Fast?

International income risk-sharing and the global financial crisis of 2008–2009

Divide and Conquer: The European Union Enlargement's Successful Conclusion?1

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