Monetary Commitment and Structural Reforms: A Dynamic Panel Analysis for Transition Economies
AbstractThis paper examines the contemporaneous relationship between the exchange rate regime and structural economic reforms for a sample of CEEC/CIS transition countries. We investigate empirically whether structural reforms are complements or substitutes for monetary commitment in the attempt to improve macroeconomic performance. Both EBRD and EFW data suggest a negative relationship between flexible exchange rate arrangements and external liberalization. Another finding from the EFW sample is that economic liberalisation has tended to be stronger under better macroeconomic fundamentals, suggesting that the impact of good macroeconomic conditions as facilitating structural reforms outweighs countervailing effects in the sense of lower reform pressure.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1221.
Length: 23 p.
Date of creation: 2012
Date of revision:
exchange rate regime; structural reform; panel data; political economy of reform; transition countries;
Other versions of this item:
- Belke, Ansgar & Vogel, Lukas, 2012. "Monetary Commitment and Structural Reforms: A Dynamic Panel Analysis for Transition Economies," IZA Discussion Papers 6775, Institute for the Study of Labor (IZA).
- Ansgar Belke & Lukas Vogel, 2012. "Monetary Commitment and Structural Reforms – A Dynamic Panel Analysis for Transition Economies," Ruhr Economic Papers 0347, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-23 (All new papers)
- NEP-MON-2012-07-23 (Monetary Economics)
- NEP-TRA-2012-07-23 (Transition Economics)
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