IDEAS home Printed from https://ideas.repec.org/a/pes/ierequ/v3y2009i2p27-37.html
   My bibliography  Save this article

The Triangle Of Impossibility Versus Posible Modifications Of The Polish Exchange Rate Regime During The Preparations For The Euro Currency'S Adoption

Author

Listed:
  • Malgorzata Madrak-Grochowska

    (Nicolaus Copernicus University)

Abstract

The main objective of this paper is to analyze whether and how the Polish exchange rate regime should be modified before Zloty’s adoption to European Rate Mechanism II (ER M II ). Possible solutions (it means: currency board, managed floating and adjustable peg) are presented as different nodes of the triangle of impossibility. The conducted research leads to the conclusion that neither currency board nor dirty floating can provide appropriate base for the calculation of the Zloty/Euro central rate. It seems the temporary introduction of adjustable peg, which allows to adjust Polish exchange rate regime to the rules of ER M II in gradual way would be the best solution. Moreover, this option provides The National Bank of Poland with the ability to intervene with the currency market in order to achieve economic stabilization. However, adjustable peg is a good solution for our country as long as both monetary and fiscal authorities cooperate and unify their policy regarding entering the ER M II . Only then can Poland meet all of the convergence criteria.

Suggested Citation

  • Malgorzata Madrak-Grochowska, 2009. "The Triangle Of Impossibility Versus Posible Modifications Of The Polish Exchange Rate Regime During The Preparations For The Euro Currency'S Adoption," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 3(2), pages 27-37, December.
    • Handle: RePEc:pes:ierequ:v:3:y:2009:i:2:p:27-37
    DOI: 10.12775/EQUIL.2009.018
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.12775/EQUIL.2009.018
    Download Restriction: no
    File URL: https://libkey.io/10.12775/EQUIL.2009.018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    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:pes:ierequ:v:3:y:2009:i:2:p:27-37. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adam P. Balcerzak (email available below). General contact details of provider: https://edirc.repec.org/data/ibgtopl.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.