A TEORETICAL APPROACH ON ERM II

This article presents an overview of the European Exchange Rate Mechanism and of the effects of this mechanism on the new Member States from the point of view of the stability of the exchange rate, of the convergence with the macroeconomic policy and of the inflation stabilization. There will be outlined the contradictions which may appear between the preparation of the EU accession conditions and those regarding the accession to EMU, with the intermediate stage ERM II, including the effect Balassa-Samuelson. Another important element is to set the central exchange rate for ERM II because this central exchange rate will be similar or almost similar with the future exchange rate as opposed to Euro.ERM II, exchange rate, exchange rate stability system reform,demographic evolution