Exchange Rate Arrangements in Central and Eastern European Countries – Evolutions and Characteristics

Toma, Ramona (2007): Exchange Rate Arrangements in Central and Eastern European Countries – Evolutions and Characteristics.

Abstract

The process of choosing the exchange rate regime for the new EU member states has been influenced by other criteria than the traditional ones, which belong to macroeconomic criteria. This paper make a comparative analyze of the exchange rate arrangements in Central and Eastern European after 1990. These arrangements are dynamic on the one hand due to their permanent diversification and on the other hand because the values established this way are rapidly changing. In essence, they differ according to the degree of flexibility adopted when the exchange rate is established: from more rigid forms – currency board or pegging the currency to a foreign currency – to free floating.

• Item Type: MPRA Paper
• Institution: Lucian Blaga University of Sibiu
• Language: English
• Keywords: exchange rate; arrangements; Central and Eastern European countries
• Subjects: F - International Economics > F3 - International Finance > F31 - Foreign Exchange; F - International Economics > F3 - International Finance > F33 - International Monetary Arrangements and Institutions; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E42 - Monetary Systems ; Standards ; Regimes ; Government and the Monetary System ; Payment Systems

References

• Calvo, G., Reinhart, C. - “Fear of Floating”, Quarterly Journal of Economics, Vol. 117:2, 2002, p. 379-408 • Eichengreen, B., Razo-Garcia, R. - „The International Monetary System in the Last and Next 20 Years”, Economic Policy Panel, October 2005 • Fischer, S. - “Exchange Rate Regimes: Is the Bipolar View Correct?”, Journal of Economic Perspectives, No. 15:2, 2001 • Levi, M. - “International Finance”, 4th Edition, Routledge, New York, 2005 • Levy-Yeyati, E., Sturzenger, F. - „Exchange Rate Regimes and Economic Performances”, IMF Staff Papers, Vol. 47, 2001 • Obstfeld, M., Rogoff, K. - “The Mirage of Fixed Exchange Rates”, Journal of Economic Perspectives, No. 4, 1995 • Orlowski, L. - “Monetary Convergence of the EU Accession Countries to the Eurozone: A Theoretical Framework and Policy Implications”, in Journal of Banking and Finance, Elsevier, vol. 29/2005, p. 203-225 • Reinhart, C., Rogoff, K. - „The Modern History of Exchange Rate Arrangements: A Reinterpretation”, NBER Working Paper, No. 8963, 2002 • Rogoff, K., Husain, A., Mody, A., Brooks, R., Oomes, N. - “Evolution and Performance of Exchange Rate Regimes”, IMF Working Paper, No. 243, 2003 • Rose, A. K. - “One Money, One Market: Estimating the Effect of Common Currencies on Trade”, Economic Policy, No. 30, 2000 • Schadler, S., Drummond, P., Kuijs, L., Murgasova, Z., Van Elkan, R. - “Adopting the Euro in Central Europe - Challenges of the Next Step in European Integration”, IMF staff study, 2004 • IMF - “Annual Report”, April 2006 • Oesterreichische Nationalbank - “Exchange Rate Regimes: Past, Present and Future”, Proceedings of OeNB Workshops, No. 92, 2004