Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Review of Economic Perspectives

Národohospodárský obzor; The Journal of Masaryk University

4 Issues per year


CiteScore 2016: 0.50

SCImago Journal Rank (SJR) 2016: 0.262
Source Normalized Impact per Paper (SNIP) 2016: 0.516

Open Access
Online
ISSN
1804-1663
See all formats and pricing
More options …
Volume 13, Issue 3

Issues

The Blundered Strategy of Euro Adoption in the Czech Republic: A ”Pre-crisis“ Retrospective

Vladislav Flek
Published Online: 2013-10-08 | DOI: https://doi.org/10.2478/revecp-2013-0005

Abstract

The commitment to join the eurozone in 2009-2010 was rejected by Czech Republic in 2006 at a time when signs of the eurozone crisis were not yet apparent. Nor did the prospects of failure to fulfil any of the Maastricht Convergence Criteria have any realistic basis. Real or alleged difficulties in meeting the Maastricht Convergence Criteria and attaining economic alignment with the eurozone did not serve as a mobilization factor for economic policies. Instead, these issues were perceived to offer an objective reason against euro adoption within the declared timeframe. The official stance against the euro was partly based on serious analytical and short-term forecasting errors, if not on deliberate manipulations, including an overemphasised misalignment of the Czech economy with the eurozone.

Keywords : Czech Republic; eurozone; Maastricht Convergence Criteria; nominal and real convergence; single European currency

  • Analyses of the Czech Republic’s Current Economic Alignment with the Euro Area (2008). Czech National Bank. Retrieved July 6, 2012 from http://www.cnb.cz/-miranda2/export/sites/www.cnb.cz/en/monetary_policy/strategic_documents/download/analyses_of_alignment_2008.pdf.Google Scholar

  • Assessment of the Fulfilment of Maastricht Convergence Criteria and the Degree ofEconomic Alignment of the Czech Republic with the Euro Area (2004-2008). Ministry of Finance of the Czech Republic and the Czech National Bank. Retrieved March 25, 2010, from http://www.zavedenieura.cz/cps/rde/xchg/euro/xsl/14.html.Google Scholar

  • BORGERSEN, T. A., KING, R. M. (2011). Reallocation and restructuring: A generalization of the Balassa-Samuelson effect. Structural Change and EconomicDynamics, Vol. 22, No. 4, pp. 287- 298. DOI: 10.1016/j.strueco.2011.07.001. ISSN: 0954-349X.CrossrefGoogle Scholar

  • Convergence Programmes of the CR (2004-2008). Retrieved 16 June, 2011 from http://www.zavedenieura.cz/cps/rde/xchg/euro/xsl/dokumenty_vladni_material.html.Google Scholar

  • DĚDEK, O. (2002). Česká ekonomika a euro (Czech economy and the euro). Politickáekonomie, Vol. L, No. 3, pp. 361-375.Google Scholar

  • DYBCZAK, K., FLEK, V., HÁJKOVÁ, D., HURNÍK, J. (2006). Supply SidePerformance and Structure in the Czech Republic. CNB Working Paper No. 4.Google Scholar

  • ECB (2008). Convergence Report. Frankfurt, European Central Bank.Google Scholar

  • EGERT, B. (2002). Investigating the Balassa-Samuelson in the Transition: Do We Understand What We See? Economics of Transition, Vol. 10, No. 2, pp. 279-309. DOI: 10.1111/1468-0351.00112CrossrefGoogle Scholar

  • Eurofound (2007). Fourth European Working Conditions Survey. Dublin, European Foundation for the Improvement of Living and Working Conditions.Google Scholar

  • European Commission (2008). Convergence Report 2008. European Economy 3/2008. Retrieved 16 June 2011, from http://ec.europa.eu/economy_finance/publications/-publication12574_en.pdf Google Scholar

  • European Commission (2010). Excessive deficits - Cyprus, Denmark and Finland jointhe watchlist. Press release, Retrieved 16 June, 2011, from http://ec.europa.eu/news/-economy/100616_en.htm.Google Scholar

  • Fiscal Outlook of the Czech Republic (2009): Ministry of Finance of the Czech Republic. Retrieved 16 June, 2011 from http://www.mfcr.cz/cps/rde/xbcr/mfcr/-FiskalniVyhled_2009Q1_komplet_doc.Google Scholar

  • FLEK, V. (2010). Euro jako naše budoucí měna: teorie a realita (Euro as our future currency: Theory and reality). In: Lacina, Rozmahel et al. (2010, pp. 261-265).Google Scholar

  • FLEK, V., ed. (2007): Anatomy of the Czech Labour Market: From Over-employmentto Under-employment in Ten Years? Prague, The Karolinum Press.Google Scholar

  • FLEK, V., MARKOVÁ, L., PODPIERA, J. (2003). Sectoral Productivity and Real Exchange Rate Appreciation: Much Ado About Nothing? Czech Journal of Economicsand Finance, Vol. 53, Nos. 3-4, pp. 130-153.Google Scholar

  • HÁJEK, M. (2008). Ekonomický růst v České republice a nových členských zemích Evropské unie (Economic growth in the Czech Republic and new EU member countries). Politická ekonomie, No. 4, pp. 435-448.Google Scholar

  • HELÍSEK, M. et al. (2009). Euro v ČR z pohledu ekonomů (Euro in the CR from the economists‘ viewpoint). Plzeň, Aleš Čeněk Publishing.Google Scholar

  • Institutional Support for the Adoption of the Euro in the Czech Republic (2005). Ministry of Finance of the Czech Republic. Retrieved 16 June, 2011 from http://www.zavedenieura.cz/cps/rde/xchg/euro/xsl/dokumenty_vladni_material.html.Google Scholar

  • KOMÁREK, L., ČECH, Z., HORVÁTH, R. (2003). Optimum Currency Area Indices -How Close is the Czech Republic to the Eurozone? CNB Working Paper No. 10.Google Scholar

  • LACINA, L., ROZMAHEL, P. et al. (2010). Euro: ano/ne? (Euro yes/no?) Prague, Alfa.Google Scholar

  • LALINSKY, T. (2010). Zkušenosti Slovenska se zavedením eura (Slovakia’s experience with Euro adoption). In: Lacina, Rozmahel et al. (2010, pp. 217-265).Google Scholar

  • LEIN, S. M., LEON-LEDESMA, M., NERLICH, C. (2008). How is real convergence driving nominal convergence in the new EU Member States? Journal of InternationalMoney and Finance, Vol. 27, No. 2, pp. 227-248. DOI: /10.1016/j.jimonfin.2007.12.004 Web of ScienceGoogle Scholar

  • MIHAJLEK, D., KLAU, M. (2003). The Balassa-Samuelson Effect in Central Europe:A Disaggregated Analysis. BIS Working Paper No. 143.Google Scholar

  • MIHAJLEK, D., KLAU, M. (2008). Catching-up and inflation in transition economies:the Balassa-Samuelson effect revisited. BIS Working Paper No. 270.Google Scholar

  • MUNDELL, R. A. (1961). A Theory of Optimum Currency Areas. American EconomicReview, Vol. LI, No. 4, pp. 509-517.Google Scholar

  • Ministry of Finance of the CR (2010): Macroeconomic prediction. Retrieved 16 June, 2011, from http://www.mfcr.cz/cps/rde/xchg/mfcr/xsl/makro_pre.html.Google Scholar

  • Protocol from the Czech National Bank Board Meeting held on 30 June 2005 (In Czech). Retrieved 6 July, 2012, from http://www.cnb.cz/miranda2/export/sites/www.-cnb.cz/cs/menova_politika/br_zapisy_z_jednani/2005/2005_06_30/pt_06_SZ_30_06_05.pdf Google Scholar

  • STARK, J. (2008). The adoption of the euro: principles, procedures and criteria. Iceland Chamber of Commerce, Reykjavik, 13. February. Retrieved 16 June, 2011, from http://www.ecb.int/press/key/date/2008/html/sp080213.en.html Google Scholar

  • The Czech Republic’s Euro-area Accession Strategy (2003). Retrieved 16 June, 2011, from http://www.zavedenieura.cz/cps/rde/xchg/euro/xsl/dokumenty_vladni_material-.html Google Scholar

  • The Czech Republic’s Updated Euro-area Accession Strategy (2007). Retrieved 16 June, 2011 from http://www.zavedenieura.cz/cps/rde/xchg/euro/xsl/dokumenty-_strategie_cr_uerozony_382.html Google Scholar

  • WORLD BANK (2009). Doing Business Report. Retrieved 16 June, 2011, from http://www.doingbusiness.org/EconomyRankings/. Google Scholar

About the article

Published Online: 2013-10-08

Published in Print: 2013-09-01


Citation Information: Review of Economic Perspectives, Volume 13, Issue 3, Pages 132–145, ISSN (Online) 1804-1663, ISSN (Print) 1213-2446, DOI: https://doi.org/10.2478/revecp-2013-0005.

Export Citation

This content is open access.

Comments (0)

Please log in or register to comment.
Log in