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Central European Countries’ Accessions to EMU - Costs and Benefits for EMU-Insiders and Outsiders
Alexander, Volbert | Loef, Hans-E.
Credit and Capital Markets – Kredit und Kapital, Vol. 36 (2003), Iss. 4 : pp. 445–464
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Volbert Alexander, Gießen
Hans-E. Loef, Siegen
References
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Abstract
During the process of economic integration in Western Europe formerly unstable peripheral countries (Ireland, Portugal, Spain) achieved higher real economic growth than Germany and France provided their stabilization efforts are treated as credible in the long run. One important reason analysed in the paper was that the shift to stability reduced uncertainties for investors. Central European Countries have an even better chance to pursue a stabilization policy without painful real effects like unemployment because their political will to join EMU and their economic advantages in case of an accession are credible. Therefore they should follow a strict stabilization strategy combined with suitable institutional and legal adjustments. (JEL F31, F33, F36)