The objective of this paper is to test the exchange rate regime – growth nexus in transition economies by looking if and how some inherent characteristics of the transition process might have affected the de-facto classifications of exchange rate regimes. 28 transition countries of Central and...

The purpose of the paper is to analyse the current crisis of the eurozone. The first part explains why the eurozone is not an optimum currency area. The second part points out that euro is an intensifier of the business cycle. The third part examines the Greek crisis. The fourth part explains...

This paper analyses the issue of the dynamics of the TARGET2 system balances during the sovereign debt crisis. The development of these balances reflects the change in the distribution of the monetary base among the EMU Member States. During the sovereign debt crisis, while some countries, among...

The recent developments in the euro area have shown how important it is that the various economic sectors pay attention to their financial positions. In the literature, the approach to analyse these positions is often partial, focusing on the government sector or just on the gross debt, as in...

It is not easy to untangle the logic that in the past led to creation of the European Monetary Union (EMU) and that is currently guiding the prevailing Eurozone (EZ) policies. Although lacking the right institutions, which can be seen as the ultimate root of its crisis, the ten years of the EMU...

The global financial crisis created new challenges for the countries which have joined the European Union since 2004 and are not yet members of the euro area. 

Adopting the Euro is Romania’s most important project in its first decade as an EU member by scope, efforts required and impact. The paper aims to initiate a comprehensive debate on topics related to the Euro adoption by raising questions, examining answers and suggesting solutions on issues...

In this article we use a Markov Switching model with two lags to identify and to compare the business cycle in Romania, Czech Republic, Hungary and Poland using data on industrial production for the 1991-2011 period. We use a model with two regimes that reflect the economic expansions and...