Publication at Faculty of Social Sciences |
2004
Abstract
This paper focuses on the option of dollarization or euroization for emerging-market economies. There are no "one-size-fits-all" exchange-rate policies for emerging-market economies; however, there are macroeconomic disadvantages associated with flexible exchange-rate regimes in such economies.
Similarly, the timing of euro adoption in EU accession countries is a complex matter as well. The paper compares the costs and benefits of euro adoption, in particular to unilateral euroization.