Should Poland join the euro area? The challenge of the boom-bust cycle

The article makes references to the existing cost-benefit analyses on adopting euro in Poland and other new member states of EU. In general, they considered a decrease cost capital be among crucial benefits common currency. As result, costs credit boombust cycle, which adoption may lead, were at best underestimated. authors discussed possible solutions mitigate risk boom-bust cycles concluded that although are conceptually simple, their effective implementation difficult, mostly due political pressures. To overcome feasibility problem, power over undertaking macro prudential measures should delegated central bank. Its past performance stabilising economy (at least until recently) suggests it could make good use such power. Furthermore, would resolve problem ‘difficult cohabitation’ monetary policy delegation otherwise create.