ABSTRACT
This chapter deals with the new member states that entered the EU in 2004, with the exception of Malta and Cyprus, the countries probably entering in 2007 (Bulgaria, Croatia and Romania), and Turkey. All of them (except Turkey) are transitional countries of Central and Eastern Europe. With the transition, new institutions with a low level of experience became responsible for issuing a new currency. These countries have experienced high inflation periods due to the liberalization of prices. In addition, the monetary authorities are not credible as they do not benefit from an established reputation.
