IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpol/v1998y1998i5id251.html
   My bibliography  Save this article

Discrepancy between Exchange Rate Regime and Monetary Policy

Author

Listed:
  • Evžen Kočenda

Abstract

The essence of the argument in the paper comes from a possible dichotomy between exchange rate and monetary policies. Many transition economies adopted exchange rate regimes characterised by different degrees of flexibility and management. Several countries, including the Czech Republic, adopted an exchange regime based on a currency basket peg. In the case of this fixed exchange rate regime, a country has by definition an exchange regime policy, gives up its own monetary policy, and the origin of a monetary base is purely a foreign one. The exact opposite is true for a floating exchange regime. A crucial difference arises in the case of a pegged regime whereby a country maintains both exchange rate and monetary policies. Under such an arrangement, eventual conflict between these two policies is likely to materialise. Such a conflict may eventually evolve into a balance of payments crisis.

Suggested Citation

  • Evžen Kočenda, 1998. "Discrepancy between Exchange Rate Regime and Monetary Policy," Politická ekonomie, Prague University of Economics and Business, vol. 1998(5).
    • Handle: RePEc:prg:jnlpol:v:1998:y:1998:i:5:id:251
    DOI: 10.18267/j.polek.251
    as

    Download full text from publisher

    File URL: http://polek.vse.cz/doi/10.18267/j.polek.251.html
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.polek.251?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
    ---><---

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

    Citations

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


    Cited by:

    1. Kocenda, Evzen, 1998. "Exchange rate in transition," MPRA Paper 32030, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    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:prg:jnlpol:v:1998:y:1998:i:5:id:251. 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: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.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.