RESTRICTIONS FOR A MEMBERSHIP IN THE EUROSYSTEM - SOME REMARKS FROM A VAR APPROACH FOR SELECTED CEE COUNTRIES

The paper focuses on the monetary transmission process in selected Central and Eastern Economies assuming their future accession to the Euro Area. A sufficient degree of homogeneity between these countries and the Euro Area with respect to economic environment and the reaction to macroeconomic shocks is necessary before an adoption of the common currency - i.e. the abandonment of the own monetary policy - is reasonable. Tremendous differences in the effects of a monetary policy stance for instance would result in economic distortions in some countries. Against this background, we apply a vector autoregression approach allowing for the restricted data basis. By the analysis of impulse-responses we provide some empirical evidence that some convergence has already taken place in several potential new member states.