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The political economy of exchange rate policy in central and east european countries - sector approach

  • Jaromír Šindel
  • Stanislav Šaroch

The article solves the incentives to the different exchange rate arrangement choice during the transformation and integration period in the Central and East European countries. It follows with the analysis of the industry structure in these economies. It is discussed the existence of its direct and indirect channel of influencing the exchange rate politics. Article solves the hypothesis of interest group formation in regard to the exchange rate policy (the euro adoption) and the intergovernmental bargaining and the bargaining within the economy. The industry analysis results confirm the set hypothesis, in which the heterogeneity of industry structure explains the heterogeneous approach to the exchange rate politics during the transformation process in monitored economies. Finally, the redistributive change of Hungarian exchange rate policy is discussed in connection with the change of subsidies flow within the political cycle.

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Article provided by University of Economics, Prague in its journal Politická ekonomie.

Volume (Year): 2008 (2008)
Issue (Month): 1 ()
Pages: 17-39

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Handle: RePEc:prg:jnlpol:v:2008:y:2008:i:1:id:628:p:17-39
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