Whatever country gives up its currency and adopts the currency of the common union, has to count on some impacts. The country loses its exchange rate convergential channel and the convergency is running throught the inflation. The level of the inflation pain depends on the difference in the economic level between those two areas, i.e. Hungary and the European Union. If Hungary adopts euro, it would lead to high inflation and numerous shocks due to Hungarian low level of convergency and different monetary policy transmission mechanism. Hungary has no chance to avoid adoption of euro in the log run, but if it keeps forint for at least a few years, Hungary can expect a tolerable inflation, more natural convergential process and the possibility to use its own monetary policy, which in Hungary is based right on the exchange rate channel of monetary transmission.
| Identifer | oai:union.ndltd.org:nusl.cz/oai:invenio.nusl.cz:15670 |
| Date | January 2009 |
| Creators | Londýn, Radek |
| Contributors | Durčáková, Jaroslava, Hejduk, Petr |
| Publisher | Vysoká škola ekonomická v Praze |
| Source Sets | Czech ETDs |
| Language | Czech |
| Detected Language | English |
| Type | info:eu-repo/semantics/masterThesis |
| Rights | info:eu-repo/semantics/restrictedAccess |
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