The European Economic and Monetary union: Pros and Risks for the Czech Republic

The intention of this essay is to evaluate pros and risks related to the Czech republics joining the European Economic and Monetary union (EMU). It reviews the present condition of economy and meeting the Maastricht criteria. It compares the development of economy though indexes of inflation and the gross domestic product (GDP) in EMU countries and the countries outside EMU. The last part gives attention to the analysis of cyclic and structural harmonization of Czech economy with EMU. The essay makes use of the Theory of Optimal Currency Areas (Mundell)