Central Europe towards monetary union: Macroeconomic underpinnings and financial reputation

Book abstract:

Two of the most talked about issues within the European Union at the start of the 21st century have been the prospect of enlargement and the launch of the single currency. This book effectively address both issues by looking at how the Visegrad countries of Hungary, Poland, the Czech and Slovak Republics have prepared themselves for membership of economic and monetary union. Issues relating to financial sector structures and macroeconomic policies are just some of the many issues facing the Visegrad countries before they are admitted into the European Union.

Following the introduction, the book is effectively divided into two parts. The next four chapters look at the macroeconomic issues facing the Visegrad countries while the following three chapters address issues related to the financial sector.

The coverage of macroeconomic issues includes an analysis of the appropriate macroeconomic policy mix for Visegrad economies, commentary on the path of the real exchange rate during the transition process, a discussion of the general issues underlying monetary control in the Visegrad economies and an assessment of the impact of capital inflows.

Issues covered under the banner of the financial sector include the task of making the Visegrad banking systems concordant with EU banking directives as well as an analysis of Visegrad bond and stock markets. The Czech Republic's abandonment of its fixed exchange rate regime in 1997 and the impact on the CEE economies is also discussed.

This book will be useful for policy makers and economists working in the academic and financial sectors.

Both Ronald MacDonald and Rod Cross are lecturers in the Department of Economics at the University of Strathclyde.