Review article

EXCHANGE RATE MECHANISM (ERM 2) : ESTONIA CASE STUDY

Tomislav Ćorić ; Sveučilište u Zagrebu, Ekonomski fakultet
Maja Mesić ; Strukovna škola Sisak

Abstract

Exchange rate mechanism 2 (ERM 2) may be considered as the final stage in the implementation of optimal currency area theory. Successful participation in ERM 2 and the possibility to become a Euro zone member are closely connected to fulfilment of nominal and real convergence criteria. ERM 2 phase in Estonia is characterized by low interest rates, fiscal and exchange rate stability, but relatively high inflation. The analysis of economic indicators shows real convergence while participating in the ERM 2, which is similar to other participant countries. However, country’s economic growth is followed by intensive growth of external debt.

Keywords

ERM 2; Estonia; convergence

Hrčak ID:

94167

URI

https://hrcak.srce.hr/94167

Publication date:

21.12.2012.

Article data in other languages: croatian

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