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An Assessment of the Currency Board Regime in Bosnia and Herzegovina

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Abstract

This paper describes the currency board regime operations in Bosnia and Herzegovina and assess its performance and sustainability in the context of the economic, political and institutional environment. To the best of our knowledge, our study seems to be unique in this respect. Based on the theoretical considerations as well as empirical evidence, we judge that Bosnia and Herzegovina’s currency board regime is well-suited and appropriate given the country’s history, its current state and its future goals. Nevertheless, we believe that the key to the currency board’s sustainability, and an eventual accession to the European Union, is a stronger legal and regulatory infrastructure and a more unified political system.

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  • Vivek H. Dehejia & Nadja Kamhi, 2005. "An Assessment of the Currency Board Regime in Bosnia and Herzegovina," Carleton Economic Papers 05-01, Carleton University, Department of Economics, revised Dec 2006.
    • Handle: RePEc:car:carecp:05-01
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    1. Guillermo A. Calvo & Frederic S. Mishkin, 2003. "The Mirage of Exchange Rate Regimes for Emerging Market Countries," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 99-118, Fall.
    2. Mr. Atish R. Ghosh, 1998. "Currency Boards: The Ultimate Fix?," IMF Working Papers 1998/008, International Monetary Fund.
    3. Leland B. Yeager, 2000. "Exchange Rates between What Sorts of Currencies?," Cato Journal, Cato Journal, Cato Institute, vol. 20(1), Spring/Su.
    4. Enrique Alberola & Luis Molina, 2000. "Fiscal Discipline and Exchange Rate Regimes: a Case for Currency Boards?," Working Papers 0006, Banco de España.
    5. repec:cto:journl:v:20:y:2000:i:1:p:49-59 is not listed on IDEAS
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    2. Popov, Vladimir, 2010. "To devalue or not to devalue? How East European countries responded to the outflow of capital in 1997-99 and in 2008-09," MPRA Paper 28112, University Library of Munich, Germany.

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