Abstract:

The objective of this short paper is to propose an original analysis of convergence process and of its relationship with the euro adoption for Romania. An economy such Romania should postpone the transition to the single currency, because it is an undeveloped economy and extremely structural different from the rest of the EU. Under these terms, the economic shocks will asymmetrically affect Romania, the convergence with the Eurozone business cycles will be lower, and it will be more difficult for the national economy to adjust the shocks which affect it. However, the enhancement of the commercial and financial relations between the Romanian economic agents and those from the Eurozone will increase the benefits from adopting the Euro currency, contributing to a lower risk in developing the asymmetric shocks and to the increase of the convergence between the business cycles.