Where Do the Newest EU Member States Stand on the Road to Monetary Integration?

International Trade and Finance Association Working Paper No. 4/2008

19 Pages Posted: 25 Sep 2008

See all articles by Elena Bojesteanu

Elena Bojesteanu

Bucharest Academy of Economic Studies

Gabriel Bobeica

Bucharest Academy of Economic Studies

Date Written: August 21, 2008

Abstract

The present study sheds light on important aspects of monetary integration in the European Union involving the newest member states. It assesses the degree to which they satisfy the business cycle correlation criteria.

Our results demonstrate that there is a common business cycle in the Euro area and that most of the candidate countries exhibit convergence with this group, with the remarkable exception of Estonia, Lithuania, Slovakia and Romania. Bulgaria shows better achievements than Romania in terms of business cycle synchronization with the Euro zone.

Keywords: bussines cycle synchronization, Romania, Bulgaria, detrending methods, consensus

JEL Classification: F15, F41, F49

Suggested Citation

Bojesteanu, Elena and Bobeica, Gabriel, Where Do the Newest EU Member States Stand on the Road to Monetary Integration? (August 21, 2008). International Trade and Finance Association Working Paper No. 4/2008, Available at SSRN: https://ssrn.com/abstract=1243063 or http://dx.doi.org/10.2139/ssrn.1243063

Elena Bojesteanu (Contact Author)

Bucharest Academy of Economic Studies ( email )

Piata Romana No. 6
Sect. 1
Bucharest, 010374
Romania

Gabriel Bobeica

Bucharest Academy of Economic Studies ( email )

6, Romana Square, District 1
Bucharest, 010374
Romania

HOME PAGE: http://www.ase.ro

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