Central European Business Review 2013, 2(1):21-27 | DOI: 10.18267/j.cebr.35

How Far Along is Euro Adoption in the Czech Republic? Benefits for Businesses Still Remain

Mojmír Helísek
Assoc. Prof. Mojmír Helísek, Department of Economics and International Relations, University of Finance and Administration, Estonská 500, 101 00 Prague 10, Czech Republic, mojmir.helisek@vsfs.cz

The objective of the paper is to assess the reasons for the current negative position of the Czech Government toward euro adoption and to find out whether the expected benefits of euro adoption for Czech companies still remain. The postponement of euro adoption in the Czech Republic has mainly been caused by the current problems of the euro area. The benefits arising from euro adoption are subject to the reduction of the exchange rate volatility and of the transaction costs, whereas they also depend on the degree of integration with the euro area. These benefits may still be expected - neither the financial crisis nor the economic recession has affected them. The integration of the Czech economy with the euro area is high and still growing. Therefore, euro adoption will lead to the stimulation of mutual trade of the Czech Republic and the euro area.

Keywords: euro; euro area enlargement; exchange rate volatility; transaction costs
JEL classification: F36, M16, M21

Received: November 8, 2012; Revised: March 1, 2013; Published: March 31, 2013  Show citation

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Helísek, M. (2013). How Far Along is Euro Adoption in the Czech Republic? Benefits for Businesses Still Remain. Central European Business Review, 2(1), 21-27. doi: 10.18267/j.cebr.35
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