Edited by Ewald Nowotny, former Governor, Oesterreichische Nationalbank, Peter Mooslechner, formerly Oesterreichische Nationalbank and Doris Ritzberger-Grünwald, Director, Oesterreichische Nationalbank, Austria

• Contents:Preface The Academic View Up Front: Towards a New MacroeconomicsPaul De Grauwe PART I: THE STABILITY MERITS OF THE EURO1. The Euro’s Role on the World StageJoaquín Almunia2. The Euro’s Contribution to Economic Stability in CESEEEwald NowotnyPART II: A CASE FOR RAPID EURO ADOPTION?3. Serbia: On the De-euroization Road to the EuroRadovan Jelašić4. A Case for Rapid Euro Adoption?Sławomir S. Skrzypek5. The Czech Republic on its Way to the Euro: A Stabilization Role of Monetary Policy RevisitedJaromír Hurník, Zdeněk Tůma and David Vávra6. Preparing for Euro AdoptionGertrude Tumpel-GugerellPART III: THE EURO AREA – A SHELTER? EURO ASSETS – A SAFE HAVEN?7. The Euro Area: A Shelter? Estonia’s PerspectiveMärten Ross8. Slovakia’s Experience with the EuroIvan Šramko9. Currency Substitution in the Economies of Central Asia: How Much Does it Cost?Asel Isakova10. The Euro as a Safe Haven Asset in Central, Eastern and South-Eastern EuropeHelmut StixPART IV: LESSONS – FROM EURO AREA DIVERGENCES, AND FROM THE CRISIS11. Economic Divergence Within the Euro Area: Lessons for EMU EnlargementAgnès Bénassy-Quéré, Antoine Berthou and Lionel Fontagné12. Facts and Lessons from Euro Area Divergences for EnlargementZsolt Darvas13. Revisiting the European Financial Supervisory Architecture – Lessons from the Crisis in Emerging Europe Erik Berglof and Franziska Ohnsorge14. Overconfidence as a Cause of Crisis: The Case of UkraineVladimir DubrovskiyPART V: POST-CRISIS BUSINESS MODELS OF BANKS IN CEE15. The Russian Banking Sector One Year After the Crisis BeganNataliya Orlova16. Post-crisis Business Models of Banks in CEE – The Case of RaiffeisenHerbert Stepic17. Post-crisis Business Models of Banks in CEE – The Case of Intesa SanpaoloGyörgy SurányiIndex

‘The Euro and Economic Stability sounds today like a question repeatedly asked in the EMU, in the countries aspiring to join it and in the whole region. This question is not only of academic, but also of practical importance. Distinguished contributors, both from academia and policymaking institutions, national and international, prove to us that the answer is not simple. Moreover, it depends on the initial exchange rate regime of a country and on the importance of euro (and other foreign currencies) for domestic financial markets. Reading this book, thus, gives a much better understanding how complex are all possible links between the euro and economic stability.’