Costs and Benefits of Poland's EMU Accession: a Tentative Assessment

This paper addresses the balance of costs and benefits arising from the adoption of the euro in Poland. It shows that given the present degree of economic integration between Poland and the euro area, the potential costs of relinquishing the monetary policy autonomy in Poland are likely to be modest. A tentative assessment suggests that the switch to the euro is expected to raise GDP per capita in Poland by 4%–7% in the long run. The paper concludes that, on balance, Poland is likely to benefit significantly from the EMU membership. Comparative Economic Studies (2004) 46, 127–145. doi:10.1057/palgrave.ces.8100036