Economic policies on Slovenia's road to the euro area

Weyerstrass, KlausORCID: (2008) Economic policies on Slovenia's road to the euro area. Economic Systems, 32 (1), pp. 92-102. DOI: 10.1016/j.ecosys.2007.09.003

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On 1 January 2007, Slovenia was the first new EU member state to enter the euro area. Since June 2004, the Slovenian tolar participated in the exchange rate mechanism ERM-II with a central parity of 239.64 against the euro. This parity was also the conversion rate upon euro area accession. Applying a macroeconometric model of Slovenia, this paper analyses the macroeconomic effects of different conversion rates. These simulations are compared to a scenario with flexible exchange rates. The best results are obtained with the actual conversion rate. In addition, it is shown that the labour market performance can be significantly improved by cutting non-wage labour costs.

Item Type: Article in Academic Journal
Keywords: Slovenia, Euro area, fiscal policy, macroeconometric model
Classification Codes (e.g. JEL): C53, E17, F15
Date Deposited: 27 Aug 2015 13:46
Last Modified: 05 Jul 2019 08:39
DOI: 10.1016/j.ecosys.2007.09.003
ISSN: 0939-3625 (Print), 1878-5433 (Online)

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