This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Monetary Policy Adjustments on the Final Passage towards the Euro Author info | Abstract | Publisher info | Download info | Related research | Statistics Lucjan T Orlowski (Sacred Heart University)
Additional information is available for the following
registered author(s):
This study reviews monetary policy options that are seemingly viable for adopting the euro by the new Member States of the European Union. A fully autonomous direct inflation targeting is believed to be suboptimal for convergence to the euro as it does not incorporate convergence parameters into the central bank reaction function and instrument rules. In an attempt to correct for such deficiency, this study advocates adopting a framework of relative inflation forecast targeting where a differential between the domestic and the eurozone inflation forecasts becomes the main objective of the central bank’s decisions. At the same time, some attention to the exchange rate stability objective becomes necessary for facilitating the monetary convergence process. Foreign exchange market interventions, rather than interest rate adjustments, are viewed as a preferred way of achieving this objective.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by EconWPA in its series Macroeconomics with number
0503022.
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Length: 20 pages
Date of creation: 29 Mar 2005Date of revision:
Handle: RePEc:wpa:wuwpma:0503022Note: Type of Document - pdf; pages: 20Contact details of provider: Web page: http://129.3.20.41
For technical questions regarding this item, or to correct its listing, contact: (EconWPA).
Keywords: Monetary convergence ; euro adoption ; ERM II ; new Member States ; Other versions of this item:
Find related papers by JEL classification: E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies 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 P24 - Economic Systems - - Socialist Systems and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Svensson, Lars E. O., 2000.
"Open-economy inflation targeting ,"
Journal of International Economics ,
Elsevier, vol. 50(1), pages 155-183, February.
[Downloadable!] (restricted)
Other versions:
Lars E. O. Svensson, 2000.
"Open-Economy Inflation Targeting ,"
NBER Working Papers
6545, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Svensson, L.E.O., 1998.
"Open-Economy Inflation Targeting ,"
Papers
638, Stockholm - International Economic Studies.
Svensson, Lars E.O., 1998.
"Open-Economy Inflation Targeting ,"
Seminar Papers
638, Stockholm University, Institute for International Economic Studies.
[Downloadable!] Svensson, Lars E O, 1998.
"Open-Economy Inflation Targeting ,"
CEPR Discussion Papers
1989, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) György Szapáry, 2000.
"Maastricht and the Choice of Exchange Rate Regime in Transition Countries During The Run-Up to EMU ,"
MNB Working Papers
2000/7, Magyar Nemzeti Bank (The Central Bank of Hungary).
[Downloadable!]
Other versions: Robert F. Westcott & Peter F. Christoffersen, 1999.
"Is Poland Ready for Inflation Targeting? ,"
IMF Working Papers
99/41, International Monetary Fund.
D. Mario Nuti, 2002.
"Costs and benefits of unilateral euroization in central eastern Europe ,"
The Economics of Transition ,
The European Bank for Reconstruction and Development, vol. 10(2), pages 419-444, July.
[Downloadable!] (restricted)
Fabio M. Natalucci & Federico Ravenna, 2002.
"The road to adopting the euro: monetary policy and exchange rate regimes in EU candidate countries ,"
International Finance Discussion Papers
741, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Other versions: Kutan, Ali M. & Yigit, Taner M., 2004.
"Nominal and real stochastic convergence of transition economies ,"
Journal of Comparative Economics ,
Elsevier, vol. 32(1), pages 23-36, March.
[Downloadable!] (restricted)
Lucjan Orlowski, 2003.
"Monetary Convergence and Risk Premiums in the EU Accession Countries ,"
Open Economies Review ,
Springer, vol. 14(3), pages 251-267, July.
[Downloadable!] (restricted)
Carmen M. Reinhart & Kenneth S. Rogoff, 2002.
"The Modern History of Exchange Rate Arrangements: A Reinterpretation ,"
NBER Working Papers
8963, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Reinhart, Carmen & Rogoff, Kenneth, 2004.
"The modern history of exchange rate arrangements: A reinterpretation ,"
MPRA Paper
14070, University Library of Munich, Germany.
[Downloadable!] Carmen M. Reinhart & Kenneth S. Rogoff, 2004.
"The Modern History of Exchange Rate Arrangements: A Reinterpretation ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 119(1), pages 1-48, February.
[Downloadable!] (restricted) Kocenda, Evzen & Kutan, Ali M. & Yigit, Taner M., 2006.
"Pilgrims to the Eurozone: How far, how fast? ,"
Economic Systems ,
Elsevier, vol. 30(4), pages 311-327, December.
[Downloadable!] (restricted)
Egert, Balazs & Drine, Imed & Lommatzsch, Kirsten & Rault, Christophe, 2003.
"The Balassa-Samuelson effect in Central and Eastern Europe: myth or reality? ,"
Journal of Comparative Economics ,
Elsevier, vol. 31(3), pages 552-572, September.
[Downloadable!] (restricted)
Other versions: Evzen Kocenda & Ali M. Kutan & M. Taner Yigit, 2005.
"Pilgrims to Eurozone: How Far, How Fast ,"
Departmental Working Papers
0501, Bilkent University, Department of Economics.
[Downloadable!]
Dibooglu, Sel & Kutan, Ali M., 2005.
"Sources of inflation and output movements in Poland and Hungary: Policy implications for accession to the economic and monetary union ,"
Journal of Macroeconomics ,
Elsevier, vol. 27(1), pages 107-131, March.
[Downloadable!] (restricted)
Kenneth Rogoff & Ashoka Mody & Nienke Oomes & Robin Brooks & Aasim M. Husain, 2003.
"Evolution and Performance of Exchange Rate Regimes ,"
IMF Working Papers
03/243, International Monetary Fund.
[Downloadable!]
Other versions: Svensson, Lars E. O., 1999.
"Inflation targeting as a monetary policy rule ,"
Journal of Monetary Economics ,
Elsevier, vol. 43(3), pages 607-654, June.
[Downloadable!] (restricted)
Other versions:
Lars E.O. Svensson, 1998.
"Inflation Targeting as a Monetary Policy Rule ,"
NBER Working Papers
6790, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Svensson, Lars E.O., 1998.
"Inflation Targeting as a Monetary Policy Rule ,"
Seminar Papers
646, Stockholm University, Institute for International Economic Studies.
[Downloadable!] Svensson, L.E.O., 1998.
"Inflation Targeting as a Monetary Policy Rule ,"
Papers
646, Stockholm - International Economic Studies.
Svensson, Lars E O, 1998.
"Inflation Targeting as a Monetary Policy Rule ,"
CEPR Discussion Papers
1998, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Ashoka Mody & Eisuke Okada & Enrica Detragiache, 2005.
"Exits from Heavily Managed Exchange Rate Regimes ,"
IMF Working Papers
05/39, International Monetary Fund.
[Downloadable!]
Lucjan T Orlowski, 2005.
"Money Rules For The Eurozone Candidate Countries ,"
Macroeconomics
0501033, EconWPA.
[Downloadable!]
Bofinger, Peter & Wollmershauser, Timo, 2001.
"Is there a third way to EMU for the EU accession countries? ,"
Economic Systems ,
Elsevier, vol. 25(3), pages 253-274, September.
[Downloadable!] (restricted)
Barry Eichengreen, 2002.
"Can Emerging Markets Float? Should They Inflation Target? ,"
Working Papers Series
36, Central Bank of Brazil, Research Department.
[Downloadable!]
Orlowski, Lucjan T., 2005.
"Monetary convergence of the EU accession countries to the eurozone: A theoretical framework and policy implications ,"
Journal of Banking & Finance ,
Elsevier, vol. 29(1), pages 203-225, January.
[Downloadable!] (restricted)
Lucjan T. Orlowski, 2005.
"Targeting Relative Inflation Forecast as Monetary Policy Framework for Adopting the Euro ,"
William Davidson Institute Working Papers Series
wp754, William Davidson Institute at the University of Michigan Stephen M. Ross Business School.
[Downloadable!]
Domac, Ilker & Mendoza, Alfonso, 2004.
"Is there room for foreign exchange interventions under an inflation targeting framework ? Evidence from Mexico and Turkey ,"
Policy Research Working Paper Series
3288, The World Bank.
[Downloadable!]
Buiter, Willem H & Grafe, Clemens, 2002.
"Patching up the Pact: some Suggestions for Enhancing Fiscal Sustainability and Macroeconomic Stability in an Enlarged European Union ,"
CEPR Discussion Papers
3496, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Jiri Jonas & Frederic S. Mishkin, 2003.
"Inflation Targeting in Transition Countries: Experience and Prospects ,"
NBER Working Papers
9667, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Full
references
Access and
download statistics Did you know? RePEc data is maintained by each archive holder on its own website. Nothing is held centrally.
This page was last updated on 2009-11-3.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .