How symmetric are the shocks and the shock adjustment dynamics between the euro area and central and eastern European countries?

We use a structural vector autoregression model to identify and compare demand and supply shocks between euro area countries and central and eastern European countries (CEECs). The shocks and the shock adjustment dynamics of these countries are also compared to western European EU countries that have not yet adopted the euro. Focusing on the period 1993-2001, we find that there are still considerable differences in the shocks and in the adjustment process to shocks between the euro area and the CEECs. However, there are indications that the differences between several individual CEECs and the euro area have declined recently.