EMU Enlargement and Central Bank Independence: Which Concept of Convergence to Apply?

Bank i Kredyt, Nos. 11-12, August 2007

17 Pages Posted: 14 May 2008

See all articles by Andreas Freytag

Andreas Freytag

University of Jena - Department of Economics

Abstract

EMU enlargement not only depends on the individual state of convergence of the accession candidates, but also on their political situation. Therefore, we argue that institutional convergence, in particular monetary policy binding, is equally - if not more - important for successful monetary policy in Euroland than nominal and real convergence. Based on a constitutional political economy framework, we assess the degree of central bank independence (CBI) in CEE using different measures. It can be shown that the degree of central bank independence in CEE countries is considerably high; however, there is a (decreasing) gap to the ECB's independence with respect to external aspects of CBI.

Keywords: convergence, central bank independence, EMU enlargement

JEL Classification: D70, E42

Suggested Citation

Freytag, Andreas, EMU Enlargement and Central Bank Independence: Which Concept of Convergence to Apply?. Bank i Kredyt, Nos. 11-12, August 2007, Available at SSRN: https://ssrn.com/abstract=1133005

Narodowy Bank Polski (Contact Author)

Narodowy Bank Polski ( email )

ul. Swietokrzyska 11/21
Warszawa, 00-919
Poland
48 22 185 28 52 (Phone)

HOME PAGE: http://www.nbp.pl/homen.aspx?f=/en/publikacje/materialy_i_studia/informacja_en.html

Narodowy Bank Polski ( email )

ul. Swietokrzyska 11/21
Warszawa, 00-919
Poland
48 22 185 28 52 (Phone)

HOME PAGE: http://www.nbp.pl/homen.aspx?f=/en/publikacje/materialy_i_studia/informacja_en.html

Andreas Freytag

University of Jena - Department of Economics ( email )

Carl-Zeiss-Str. 3
07743 Jena
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
44
Abstract Views
448
PlumX Metrics