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Research On The Eastward Enlargement Of The Euro Area

Posted on:2003-03-13Degree:MasterType:Thesis
Country:ChinaCandidate:G P TanFull Text:PDF
GTID:2156360065956461Subject:Finance
Abstract/Summary:PDF Full Text Request
The introduction of the Euro on January 1ST, 1999, as the common currency of 12 European countries, was one of the most important and defining monetary innovation of recent centuries. Up to now, the European Monetary Union has been successfully functioning for more than 3 years and the Euro cash has substituted 12 National currencies at the beginning of this year. People concern about the development trend of the Euro Area, which is regarded as eastward enlargement by the mainstream perspective. The Eastward Enlargement Agenda has come into being, because it not only meets the political considerations of the European Authority, but also it is supported by many economists. Is the Euro Area ready for the eastward enlargement plan now? This paper studies the readiness of the eastward enlargement and the outcome of the hurried eastward enlargement, by analyzing the economic background of the Euro area countries and the East European Candidate Countries with the Optimum Currency Area Theories. Through the analyses, the paper expresses the skeptical attitude on the hurried eastward enlargement plan. The economic circumstance of the East European Candidate Countries lags far behind that of the Euro area countries, the enlarged Euro area does not meet the requirement of the Optimum Currency Area Theories. The Lost will outweigh the gain in the hurried eastward enlargement. Furthermore, doing so will probably damage the long-term viability of the Euro Area.
Keywords/Search Tags:Euro area, Eastward enlargement, Optimum currency areas, Asymmetric shock
PDF Full Text Request
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