Anca Tanasie

(Faculty of Economics and Business Administration, University of Craiova, Romania)

 

 

Abstract: The newly emerged problems of the Euro-Area have put the monetary integration process into a whole new perspective. That is mostly due to recent debt crises in some member states economies. Still that remains a paradox as deGrawe has recently stated, due to the fact that the Euro-Zone debt ratio is still behind the US one, for example. Few questions arise from this situation: How could have the debts of relatively small countries create such an important impact? And, which is the perspective for the candidates, such as Romania? We have even come to doubt that what has been previously assumed in terms of real convergence is still in place. Leaving from all that, this paper envisages to make an assessment of Romania’s real convergence situation and its monetary integration perspectives given the new conditions. Assessment includes an evaluation of both β and σ-convergence indicators, and also an analysis of nominal convergence, with a focus on debt and deficit indicators. That analysis is of real interest especially now, when everybody wants to make sure that recent history in terms of debt crises will not repeat itself. How certain are we, that future members, will not be the source of future instabilities?

 

 

Key words: convergence; monetary integration; Romania

 

JEL codes: E42, E63