MUNDELL-FLEMING CRITERIA FOR OPTIMUM CURRENCY AREAS: THE CASE OF SLOVAKIA

• Authors: Raguseo DomeNico , Šebo Ján
• Languages of publication: EN

Abstracts

EN

This paper tests the suitability of Slovakia to join the European Monetary Union based on the international factor (labour and capital) mobility. The analysis involves others optimum currency areas criteria and also others Central and Eastern European countries and European Monetary Union member states as well are included in the sample as a benchmark for a better comparison. The results do not fully confirm the hypothesis that Slovakia already constitutes an optimum monetary union with the rest of the EMU countries; mainly the labour mobility is largely ineffective as adjustment mechanism. But, Slovakia is a open country and its economic and production structures are quite similar to the euro average. This would indicate that Slovakia should not suffer from increased likelihood of asymmetric shocks and that it is a suitable member of the euro area.

Keywords

EN

EUROPEAN MONETARY UNION; OPTIMUM CURRENCY AREA; SLOVAKIA

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2009
• Volume: 57
• Issue: 3
• Pages: 278-290
• Document type: ARTICLE

Contributors

author

Raguseo DomeNico

• Faculty of Economics, University Matej Bel in Banska Bystrica, Tajovského 10, 975 90 Banská Bystrica, Slovak Republic

author

Šebo Ján

• DomeNico Raguseo, Department of Public Economics, Faculty of Economics, University Matej Bel in Banska Bystrica, Tajovskeho 10, 975 90 Banska Bystrica, Slovak Republic

Identifiers

CEJSH db identifier

09SKAAAA065927