COMPETITIVENESS OF THE ECONOMY AND THE CRISIS OF THE EUROPEAN MONETARY UNION

Original scientific paper
Autor: Prof. dr Vladimir Grbić, Prof. dr Dragoljub Todić
JEL: E61, E63, F15, F42
doi: 10.5937/bankarstvo1402012G
SCINDEX

Summary: The crisis in the European Monetary Union revealed the internal weaknesses of its functioning. The evolution of the EMU was not accompanied by appropriate structural transformations. The prerequisite for optimal currency area on its endogenous character is not sufficiently confirmed. It was found that the competitiveness of the euro area economy worsened compared to the relevant competitors in the world. A uniform operation of the single currency has contributed to the deepening of the differences in competitiveness among members. In the longer term, the current recession has slowed the development of the EMU and raises the question of its survival. In front of the EMU’s members is a long road of the structural adjustments. In order to adapt to the European crisis adequately, Serbian finance highly dependent on euro must choose an appropriate exchange rate regime.

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