41-78

• Gibson, Heather D.
• Τσακαλωτός, Ευκλείδης

The purpose of this paper is to examine the experience of convergence with an exchange rate target in the southern European economies (SEEs). We argue that their experience has much to teach new and prospective EU members. We discuss the similarities of the SEEs and the new/prospective EU members in order to establish the relevance of the experience of the former for the latter. We then go on to offer evidence on the experience of SEEs with capital flows and speculative crises in the run-up to EMU membership. We discuss the implications of these results for the institutional structure of ERM II and conclude by discussing policy options available to the new/prospective members in the light of the previous analysis.

• Economics and Business

• Finance
• Economics

capital flows, southern European economies, accession countries and EU membership

Περιέχει πίνακες, διαγράμματα, σημειώσεις, παράρτημα και βιβλιογραφία, We would like to thank two anonymous referees for their comments on the paper. The views expressed in this paper are the authors’ own and do not necessarily reflect those of the institutions to which they are affiliated., JEL Classification: F32, F36, P20