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Exchange rate arrangements in the run-up to the EMU: some experience in currency board countries

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  • Julda Kielyte

Abstract

Since the beginning of the transition process from centrally planed to market economies, East European countries have experienced relatively high inflation and a market depreciation of their currency. Their monetary systems have gone through dramatic changes in the recent ten years, making the transition from a mono-bank to the traditional autonomous central bank. Some have adopted a currency board arrangement (CBA). Three candidate countries to the European Union (EU) - Bulgaria, Estonia and Lithuania -face the perspective of becoming a full-fledged members of the EU and after of the European Monetary Union (EMU). This paper investigates the issues and advantages of CBAs, especially in three transition countries (Estonia, Lithuania and Bulgaria) in the context of accession to the EU and to the European Monetary Union (EMU).

Suggested Citation

  • Julda Kielyte, 2002. "Exchange rate arrangements in the run-up to the EMU: some experience in currency board countries," EERI Research Paper Series EERI_RP_2002_01, Economics and Econometrics Research Institute (EERI), Brussels.
    • Handle: RePEc:eei:rpaper:eeri_rp_2002_01
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    File URL: http://www.eeri.eu/documents/wp/EERI_RP_2002_01.pdf
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    References listed on IDEAS

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    8. Balázs Egert, 2002. "Investigating the Balassa-Samuelson hypothesis in the transition: Do we understand what we see? A panel study," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 10(2), pages 273-309, July.
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    Cited by:

    1. Victor Rivas, 2012. "Structural Estimation of Variety Gains from Trade Integration in a Heterogeneous Firms Framework," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 55(2), pages 78-93.
    2. James Anderson, 2001. "Migration, FDI, and the Margins of Trade," EERI Research Paper Series EERI_RP_2001_05, Economics and Econometrics Research Institute (EERI), Brussels.

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    More about this item

    Keywords

    European Monetary Union; currency board arrangement; Exchange rate arrangements; CEE;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • 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
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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