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Overvalued or Undervalued Euroland Entry?

Author

Listed:
  • Jens Holscher
  • Mariusz Jarmuzek

Abstract

This study addresses the question of the conversion rate upon joining the European Union with respect to the accession countries of Eastern Europe. The article argues in favour of an undervalued exchange rate in order to promote income generation in the new member countries. For this purpose a strategy of managed float is proposed. Countries not having the preconditions to pursue such a strategy should adopt a currency board arrangement.

Suggested Citation

  • Jens Holscher & Mariusz Jarmuzek, 2005. "Overvalued or Undervalued Euroland Entry?," Post-Communist Economies, Taylor & Francis Journals, vol. 17(2), pages 235-250.
    • Handle: RePEc:taf:pocoec:v:17:y:2005:i:2:p:235-250
    DOI: 10.1080/14631370500104968
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    References listed on IDEAS

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    1. Simon Wren-Lewis & Rebecca Driver, 1998. "Real Exchange Rates for the Year 2000," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa54, October.
    2. William Ellery Channing, 1994. "Change," American Journal of Economics and Sociology, Wiley Blackwell, vol. 53(1), pages 15-15, January.
    3. John Williamson, 1994. "Estimating Equilibrium Exchange Rates," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 17, October.
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