The costs and risk of introduction of the euro in Poland
On the 1st of May 2004, Poland became a member state of the European Union. At the moment, it doesn’t fulfill the convergence criteria required for the introduction of the euro, but will have to adapt in the future. The aim of this article is to identify potential risks and economic costs that could...
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| Format: | Article |
| Language: | English |
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University of Gdansk
2012-09-01
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| Series: | Contemporary Economy |
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| Online Access: | http://www.wspolczesnagospodarka.pl/?p=536 |
| _version_ | 1828482969596067840 |
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| author | Aldona Kozakiewicz |
| author_facet | Aldona Kozakiewicz |
| author_sort | Aldona Kozakiewicz |
| collection | DOAJ |
| description | On the 1st of May 2004, Poland became a member state of the European Union. At the moment, it doesn’t fulfill the convergence criteria required for the introduction of the euro, but will have to adapt in the future. The aim of this article is to identify potential risks and economic costs that could occur due to Poland’s integration with the eurozone. The joining country loses the ability to run an autonomous monetary policy. The scale of adverse effects depends, among other factors, on decisions made by the European Central Bank, effectiveness of adjustment mechanisms and types of shocks. Economic costs may occur on a long time scale, which is related to the fact that economic structure of Polish economy is not exactly similar to the EU and there is low flexibility of wages in Poland. Most countries of the eurozone do not fulfill the fiscal criteria, creating a threat to the economy. The article sums up possible consequences of introducing the single currency that are expected and should be taken into consideration before joining the eurozone. |
| first_indexed | 2024-12-11T08:25:32Z |
| format | Article |
| id | doaj.art-79cc43e14ebd4672aece04938e1bd45f |
| institution | Directory Open Access Journal |
| issn | 2082-677X |
| language | English |
| last_indexed | 2024-12-11T08:25:32Z |
| publishDate | 2012-09-01 |
| publisher | University of Gdansk |
| record_format | Article |
| series | Contemporary Economy |
| spelling | doaj.art-79cc43e14ebd4672aece04938e1bd45f2022-12-22T01:14:33ZengUniversity of GdanskContemporary Economy2082-677X2012-09-01331324The costs and risk of introduction of the euro in PolandAldona KozakiewiczOn the 1st of May 2004, Poland became a member state of the European Union. At the moment, it doesn’t fulfill the convergence criteria required for the introduction of the euro, but will have to adapt in the future. The aim of this article is to identify potential risks and economic costs that could occur due to Poland’s integration with the eurozone. The joining country loses the ability to run an autonomous monetary policy. The scale of adverse effects depends, among other factors, on decisions made by the European Central Bank, effectiveness of adjustment mechanisms and types of shocks. Economic costs may occur on a long time scale, which is related to the fact that economic structure of Polish economy is not exactly similar to the EU and there is low flexibility of wages in Poland. Most countries of the eurozone do not fulfill the fiscal criteria, creating a threat to the economy. The article sums up possible consequences of introducing the single currency that are expected and should be taken into consideration before joining the eurozone.http://www.wspolczesnagospodarka.pl/?p=536EuroRiskConvergenceMonetary policyEurozoneThreat |
| spellingShingle | Aldona Kozakiewicz The costs and risk of introduction of the euro in Poland Contemporary Economy Euro Risk Convergence Monetary policy Eurozone Threat |
| title | The costs and risk of introduction of the euro in Poland |
| title_full | The costs and risk of introduction of the euro in Poland |
| title_fullStr | The costs and risk of introduction of the euro in Poland |
| title_full_unstemmed | The costs and risk of introduction of the euro in Poland |
| title_short | The costs and risk of introduction of the euro in Poland |
| title_sort | costs and risk of introduction of the euro in poland |
| topic | Euro Risk Convergence Monetary policy Eurozone Threat |
| url | http://www.wspolczesnagospodarka.pl/?p=536 |
| work_keys_str_mv | AT aldonakozakiewicz thecostsandriskofintroductionoftheeuroinpoland AT aldonakozakiewicz costsandriskofintroductionoftheeuroinpoland |