Open AccessThe process of nominal and real convergence under the conditions of monetary integration
Author(s) -
Ilona Pietryka
Publication year - 2009
Publication title -
equilibrium
Language(s) - English
Resource type - Journals
eISSN - 2353-3293
pISSN - 1689-765X
DOI - 10.12775/equil.2009.020
Subject(s) - economics , economic and monetary union , diversification (marketing strategy) , convergence (economics) , exchange rate flexibility , openness to experience , european union , financial integration , monetary policy , economic integration , monetary economics , international economics , exchange rate , consumption (sociology) , financial market , macroeconomics , business , finance , exchange rate regime , social psychology , psychology , social science , marketing , sociology
The creation of the Economic and Monetary Union is the next stage of monetary integration. Due to differentiation between Member States of the European Union, expenses and profits of participation in Eurosystem are not spread similarly. The first part of this paper reviews the fulfillment of nominal Maastricht criteria (stability of public finances, prices, exchange rate and interest rates). The second part presents the state of real convergence between countries either belonging to or aspiring to European Economic and Monetary Union (flexibility of prices and salaries, mobility of means of production, integration of financial markets, openness of economy, diversification of production and consumption and similarity of economic disorders). Analyses are based on available statistical data and scientific research.