This paper proposes a new monetary policy framework for effectively navigating the path to adopting the euro. The … volatility to differentials over the euro zone in both inflation (target variable) and interest rate (instrument variable) is … proposed. The model is empirically tested for the Czech Republic, Poland and Hungary, the selected new Member States of the EU …

targeting is developed. Recent trends in these risk premiums in Hungary, the Czech Republic and Poland are tested by employing …

consolidation necessary for Poland to fulfil the Maastricht fiscal criteria. The fiscal adjustments are assessed with a CGE model …