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An Assessment of the Currency Board Regime in Bosnia and Herzegovina

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    Abstract

    This paper describes the currency board regime operations in Bosnia and Herzegovina and assess its performance and sustainability in the context of the economic, political and institutional environment. To the best of our knowledge, our study seems to be unique in this respect. Based on the theoretical considerations as well as empirical evidence, we judge that Bosnia and Herzegovina’s currency board regime is well-suited and appropriate given the country’s history, its current state and its future goals. Nevertheless, we believe that the key to the currency board’s sustainability, and an eventual accession to the European Union, is a stronger legal and regulatory infrastructure and a more unified political system.

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    File URL: http://www1.carleton.ca/economics/ccms/wp-content/ccms-files/cep05-01.pdf
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    Bibliographic Info

    Paper provided by Carleton University, Department of Economics in its series Carleton Economic Papers with number 05-01.

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    Length: 23 pages
    Date of creation: 2005
    Date of revision: Dec 2006
    Publication status: Published: An Assessment of the Currency Board Regime in Bosnia and Herzegovina – revised version in Emerging Markets Finance & Trade, Vol. 42, No. 6 (November/December 2006), pp. 46–58
    Handle: RePEc:car:carecp:05-01

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    1. repec:cto:journl:v:20:y:2000:i:1:p:49-59 is not listed on IDEAS
    2. Guillermo A. Calvo & Frederic S. Mishkin, 2003. "The Mirage of Exchange Rate Regimes for Emerging Market Countries," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 99-118, Fall.
    3. Enrique Alberola & Luis Molina, 2000. "Fiscal Discipline and Exchange Rate Regimes: a Case for Currency Boards?," Banco de Espa�a Working Papers 0006, Banco de Espa�a.
    4. Leland B. Yeager, 2000. "Exchange Rates between What Sorts of Currencies?," Cato Journal, Cato Journal, Cato Institute, vol. 20(1), Spring/Su.
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