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

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 …

In this paper we look at business cycles similarities between CEE countries and the euro area. Particularly, we uncover …-in (GDP-to-inflation) and cross-country (CEECs vs. euro area) levels. Allowing for different degrees of cyclical similarity … Latvia and the euro area being at the boundary). Looking at cross-country results, almost all countries feature a fair degree …