The political economy of monetary integration in transition countries

Monetary integration of developing and transition countries is considered as a monetary strategy for immunization against international monetary instabilities. This paper corresponds to the growing interest in the integration theory and its application to the Economic and Monetary Union formation and to EMU enlargement. The paper shows a new level of understanding of the monetary integration issues that opens new opportunities for developing countries and countries with transitional economy to integrate in global economy through non-traditional method such as euroization. Advantages and disadvantages of euroization are analyzed.