Romanian Policy-Mix to Adopting Euro

• Main Authors: Cristian Socol, Aura Gabriela Socol
• Format: Article
• Language: English
• Published: General Association of Economists from Romania 2007-09-01
• Series: Theoretical and Applied Economics
• Subjects: optimum currency area; costs; benefits; European Monetary Union; euro; convergence.
• Online Access: http://www.ectap.ro/articole/249.pdf

This paper evaluates the present estate of Euro implementation in Monetary and EconomicUnion (EMU) and Romanian position in this context. The Romanian admittance in EU at January 2007increased the interest to study the transmission and coordination mechanisms, related to mix commonmonetary policy – different fiscal policy across the countries in the Euro area. Our study focuses on theconsequences of Romanian admittance in Euro Zone in 2014 and optimal policy-mix to good preparationto accomplish this target. The controversies between economists regarding the construction processof EMU remain large. What are the consequences of implementing the “tye-hands” strategy for Romanianfinancial authorities? Can Romania solve the potential conflict between real and nominal convergencerelating the European integration? What is the best strategy for Romania with the aim to obtain afaster real convergence with the European Union countries? Can Romania maximize the benefits toadopting Euro in 2014?