01779cas a2200241 a 4500 AALejournalIMF000801 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451842579 1018-5941 BD-DhAAL BD-DhAAL Kopits, George. Implications of EMU for Exchange Rate Policy in Central and Eastern Europe / George Kopits. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (41 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In view of the requirements of Stage 2 of European Monetary Union (EMU) for accession to the European Union, this paper examines the desirability for, and the ability of, the lead candidates in Central and Eastern Europe to participate in the new exchange rate mechanism (ERM2) and eventually in EMU. For most of these countries the benefits are likely to outweigh the cost of participation. After successfully meeting the basic conditions (wage flexibility, prudent fiscal and monetary stance, financial system soundness) for ERM2, each candidate should be able to shadow the euro, with sufficient flexibility around the central rate, prior to formal participation. The paper concludes with a discussion of two policy dilemmas. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1999/009 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/009/001.1999.issue-009-en.xml IMF e-Library