Conditions and prospects of introducing the Polish zloty to the ERM II
Part of : Αρχείον οικονομικής ιστορίας ; Vol.XX, No.2, 2008, pages 47-65
Issue:
Pages:
47-65
Author:
Abstract:
One of the most important conditions of the Poland’s accession to the Economic and Monetary Union (EMU) is the fulfillment of the convergence criteria, among them – the exchange rate criterion. In order to meet it Poland is to introduce the Polish zloty to the Exchange Rate Mechanism II (ERM II) and maintain the chosen central rate without devaluation at least for two years. In our opinion Poland is able to meet the exchange rate criterion and introduce the zloty to the ERM II just now. Taking into consideration the data concerning the changes of the zloty/euro rate during the period 2006-2008 we cannot see the important impediments to maintain the fixed rate through two years in +/-15% bands. In our opinion we should introduce the zloty to ERM II as soon as possible, because it enables the smooth stabilization of the zloty/euro rate in the long term.
Subject:
Subject (LC):
Keywords:
ERM II, Poland, exchange market
Notes:
JEL classification: E44, F31, F36
