This work examines the political economy of exchange-rate policies in the eastward expansion of the eurozone. Analysis shows that prospective members of the EMU are likely to pass on some costs of convergence to the current EMU members. The mechanism is an altered exchange-rate policy that...

With the beginning of the year 1999, a further important step towards deeper integration of Europe took place: The European Monetary Union (EMU) was put into force. Undoubtedly, this has, beside other effects, also considerable effects on the economic geography of the integrating area. Possible...