In this paper we argue that, for a group of converging economies of the European Union, participation in the euro area …

This paper focuses on macroeconomic interdependencies between the Euro area and three transition economies (Estonia …, Lithuania and Latvia), with the aim of establishing whether the latter are ready to adopt the Euro. The theoretical framework is … exchange rate vis-a-vis the Euro of each Baltic country, reflecting a degree of real convergence consistent with Optimum …

traditional portfolio objectives as debt to reserve ratios decrease. We empirically estimate optimal dollar and euro shares for 24 … reserve ratios, introducing transactions demand has a elatively modest effect. We also find that euro and dollar bonds act as … sudden stops in Asia and Latin America, while the euro is a better hedge for sudden stops in Emerging Europe. We reproduce …