Abstract
Following their accession to the EU, which is planned for May 2004, eight central and east European countries will subsequently strive for integration into the Eurosystem. The Eurosystem underlines the need for simultaneous real and nominal convergence as a prerequisite for integration into the euro area. But some of the acceding countries argue that, at least in the short to medium term, a strengthening of nominal convergence makes real economic convergence more difficult. The following paper investigates this issue by means of an empirical study and attempts to establish to what extent real and nominal convergence are compatible.
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References
See ECB: The Eurosystem’s dialogue with EU accession countries. in: Monthly Bulletin, July 2002
See, in particular, Dubrovnik Conference. June 2001/2002 (http://www.hnb.hr/dub-konf/edub-konf.htm): G Szapary Maastricht and the Choice of Exchange Rate Regime in Transition Countries during the Run-up to EMU, NBH Working Paper 2000/7. Budapest 2002; Frankfurter Allgemeine Zeitung of 5 March 2002 and 26 February 2003.
The differences shown here are expressed as logarithmic variables. For methodology, see A. Kutan, T. Yigit: Nominal and Real Convergence within the Transition Economies and the European Union: Evidence from Panel Data. ZEI Working Paper. No. B 21. Center for. European Integration Studies, Bonn 2002.
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This publication represents the authors’ personal opinions and does not necessarily reflect the views of the Deutsche Dundesbank.
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Herrmann, S., Jochem, A. Real and nominal convergence in the central and east European accession countries. Intereconomics 38, 323–327 (2003). https://doi.org/10.1007/BF02914022
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DOI: https://doi.org/10.1007/BF02914022