The cross-country regression relating the relative price level to the relative GDP level is significant and stable. But there is no shorter-term trade-off between fast real convergence and low inflation. Such a tradeoff characterises the dynamic process moving the economy along the regression...

We study lessons from the experience of Finland in meeting the challenges of joining the euro area at its outset and its subsequent economic success. Traditional optimum currency area theory is too limited a framework for judging the experience in qualifying and membership.Five main factors have...