IDEAS home Printed from
   My bibliography  Save this article

The Euro and the Exchange Rate Policies of the Transition Economies of Southeastern Europe


  • Christos Papazoglou


This article examines the possible implications of the launching of the euro on the existing exchange rate arrangements of the countries of southeastern Europe. Given the adverse economic conditions most of them face, the impact of the euro is primarily related to macroeconomic stabilization and growth prospects and to a much lesser extent to the accession challenge. The analysis indicates that the introduction of the euro does not necessarily mean that a fixed regime vis-à-vis the new currency must be the desirable policy choice. As a matter of fact, given the importance of the euro in world trade, a policy of greater exchange rate stability against it would reveal in a much more profound way the economic and structural weaknesses of the particular countries. As a result, for most of them, the continuation of foreign aid is of vital importance for the sustainability of a policy of a euro-based exchange rate target.

Suggested Citation

  • Christos Papazoglou, 2003. "The Euro and the Exchange Rate Policies of the Transition Economies of Southeastern Europe," Eastern European Economics, Taylor & Francis Journals, vol. 41(3), pages 5-28, May.
  • Handle: RePEc:mes:eaeuec:v:41:y:2003:i:3:p:5-28

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Claessens, Stijn & Kingebiel, Daniela & Schmukler, Sergio L., 2002. "Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centres," WIDER Working Paper Series 094, World Institute for Development Economic Research (UNU-WIDER).
    2. Marco Pagano & Ailsa A. Röell & Josef Zechner, 2002. "The Geography of Equity Listing: Why Do Companies List Abroad?," Journal of Finance, American Finance Association, vol. 57(6), pages 2651-2694, December.
    3. Pagano, Marco & Randl, Otto & Roell, Ailsa A. & Zechner, Josef, 2001. "What makes stock exchanges succeed? Evidence from cross-listing decisions," European Economic Review, Elsevier, vol. 45(4-6), pages 770-782, May.
    4. Guercio, Diane Del & Hawkins, Jennifer, 1999. "The motivation and impact of pension fund activism," Journal of Financial Economics, Elsevier, vol. 52(3), pages 293-340, June.
    5. Gaa, Charles & Stephen Lumpkin & Robert Ogrodnik & Peter Thurlow, 2001. "The Future Prospects for National Financial Markets and Trading Centres," Staff Working Papers 01-10, Bank of Canada.
    6. Pietro Garibaldi & Nada Mora & Ratna Sahay & Jeromin Zettelmeyer, 2001. "What Moves Capital to Transition Economies?," IMF Staff Papers, Palgrave Macmillan, vol. 48(4), pages 1-6.
    7. Schmiedel, Heiko, 2001. "Technological development and concentration of stock exchanges in Europe," Research Discussion Papers 21/2001, Bank of Finland.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Khuram Shafi & Liu Hua & Amna Nazeer & Zahra Idrees, 2015. "Behavior of Exchange Rate Volatility: Once Again in Action," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(1), pages 270-276, January.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:eaeuec:v:41:y:2003:i:3:p:5-28. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.