Monetary policy and EMU enlargement: Issues regarding ERMII
and adoption of the Euro in Estonia.
While Sweden does not have a formal opt-out clause like the UK and Denmark, they have remained outside the single currency area by postponing membership of ERMII
and thereby failing to meet the exchange rate criterion.
Monetary policy remains dedicated to maintaining the value of the Danish Krone against the euro in the ERMII
Simulations with a global econometric macromodel, NiGEM, offer insight into which countries may benefit most from postponing membership of ERMII
The differential between one-year euro and forint implied forward rates starting in 2005 has been around 300 basis points in the period since May 2001, (10) of which 30-40 basis point corresponds to country risk premium within ERMII