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Lithuania: History and Future of the Currency Board Arrangement: Author info | Abstract | Publisher info | Download info | Related research | Statistics Patricia Alonso-Gamo
Stefania Fabrizio
V. Kramarenko
Qing Wang
The paper examines the evolution of the institutional setup of Lithuania's Currency Board Arrangement (CBA) and competitiveness from 1994 through 2001, with a view to determining the resilience of the Lithuanian CBA to external shocks in 2002-03. First, several indicators of competitiveness are analyzed in the context of productivity gains and flexibility of the labor market and prices are considered. Then, the equilibrium exchange rate and misalignments of the actual rate from it are estimated in a cointegration framework. The paper concludes that, under current policies, the CBA would be able to cope with sizable external shocks during 2002-03 provided supporting policies remain in place.
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Paper provided by International Monetary Fund in its series IMF Working Papers with number
02/127.
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Length: 35 pages
Date of creation: 12 Aug 2002Date of revision:
Handle: RePEc:imf:imfwpa:02/127Contact details of provider: Postal: International Monetary Fund, Washington, DC USA Phone: (202) 623-7000 Fax: (202) 623-4661 Email: Web page: http://www.imf.org/external/pubind.htm More information through EDIRC
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For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: Currency boards ; Lithuania ; Real effective exchange rates ; Other versions of this item:
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