EconStor >
Freie Universität Berlin >
Jean Monnet Centre of Excellence (JMC) - Ezoneplus Research Project, Freie Universität Berlin >
Ezoneplus Working Papers, Jean Monnet Centre of Excellence, FU Berlin >

Please use this identifier to cite or link to this item:
Title:The Eastward Enlargement of the Eurozone Final Report on "Exchange Rate Regimes" PDF Logo
Authors:Orsi, Renzo
Iacone, Fabrizio
Issue Date:2003
Series/Report no.:Ezoneplus working paper 16
Abstract:The CEEC are approaching the accession to the EU with a variety of exchange rate regimes. The authors find that these differences depend on economical factors as well as on the history of the countries. For that purpose, they discuss the role of the exchange rate in the stabilization of the inflation rate at the beginning of the transition from the central planning to the market economy, finding that, combining internal price liberalisation, openness to the international trade and a commitment to exchange rate stability the countries in transition – with the exception of Slovenia – provided the system with a nominal anchor by importing the price structure of the trade partners. Later, the capital liberalisation required for the progressive integration in the EU exposed the CEEC to speculative attacks and exchange rate pressure and most of them weakened the exchange rate commitment or withdrew it at all. The Baltic States are the only ones still maintaining a strong exchange-rate commitment. The authors conjecture that this is due to the smaller size of these countries, which makes the interest rates of the domestic currency of little importance to the economy when compared to the exchange rate. Policy advice completes this report.
Subjects:Exchange Rate Regimes for CEEC
Optimum Currency Areas
Document Type:Working Paper
Appears in Collections:Ezoneplus Working Papers, Jean Monnet Centre of Excellence, FU Berlin

Files in This Item:
File Description SizeFormat
ezp_wp_16.pdf1.07 MBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.