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Global Financial Turbulence in the Euro Area

Polish Perspective

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Edited By Alojzy Nowak

For many years Alojzy Z. Nowak has been observing the major trends in the global economy. In this volume he presents articles by different authors who analyse the impact of the current crisis in the financialisation of the world economy. The contributions also discuss the ethical failures in the most recent financial upheavals and take into account the Polish perspective of these matters. There is a special focus on the question of whether Poland should join the Euro area and how the Euro area can find solutions to its problems.
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Euro or Zloty?

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1

Introduction

The events taking place recently in Ukraine caused, among other things, renewed debate in Poland about the need for accession to the Euro Area as soon as possible. As noted by some economists, along with politicians and representatives of business circles, staying outside the Euro Area for any longer during the period of turbulence suffered in close geographic proximity to our borders may expose Poland to many disadvantages related, inter alia, with potential attacks of stock exchange speculators, or deterioration of assessments of situation in the region, with such possible effects as depreciation of Polish Zloty, etc.

Leaving aside, for the moment, the fact that at present neither the Euro Area nor Poland are ready for the enlargement of the Eurozone, the problem of Poland’s accession to Euro Area is indeed important, both in theoretical and practical terms. Actually, it is also linked to the question whether it is an exogenous or an endogenous money – in relation to a country’s economy – that better serves national economy over periods of financial or political turbulence and has a better influence upon business cycles. Although it is known that neither has Poland satisfied all the criteria essential for its accession to Euro Area yet, nor has the Economic and Monetary Union been really prepared at the moment to accommodate such a significant enlargement, considering how it still struggles with problems of fiscal crisis and structural reforms, still it is worthwhile and indeed necessary to address...

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