The European Union is conducting accession talks with ten Central and Eastern European states. Full membership in the EU requires full adoption of the acquis communautaire and thus implies participation in the Economic and Monetary Union. Since the transformation process in the real economies of the countries concerned has not yet been completed, changes in the real exchange rates will continue to be necessary, in some cases to a considerable extent.

In this work, the author examines how the reform countries should shape their exchange rate policies with a view to coping with the transformation-related need for real exchange rate adjustments. Overall, the work presents a sound positive and normative analysis of the monetary relations of the Central and Eastern European aspirants to join the euro area.

This publication is aimed at all economic and monetary policymakers as well as laypersons interested in economics who are concerned with the monetary dimension of the EU’s eastward enlargement process.