IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Estoniaís Way from Soviet Rouble to Own Kroon

Listed author(s):
  • Kalev Kukk


    (State Chancellery of the Republic of Estonia)

Registered author(s):

    15 years passed on 20 June 2007 from the currency reform in Estonia. Estonia was the first from the former Soviet Union republics to exit the rouble zone. In principle, the 1992 currency reform was an evolutionary process where 20th June signified only one, largely technical stage in the whole reform story. This day Soviet roubles were removed from circulation. The kroon was pegged to the German mark under the currency board arrangement principles with the exchange rate set at 1 DEM = 8 EEK. In spite all those who then, or also later, predicted a fast fall of the kroon, it has persisted at its initial external value. Since 1 January 1999 Estonian kroon was repegged at the same rate to the Euro ñ 1 Euro = 15.64664 EEK. It is possible to discern two absolutely different periods in the reform story ñ the pre-independence period and the period of actual introduction of Estonian national currency. The first period was the time of emotional (largely na?ve in economic context) discussions with clearly political colouring where the theoretical idea of the currency reform was based actually on the principle to build up a dual monetary system for the Soviet Union (the models of Rein Otsason and Vello Volt). The real opportunity to exit from the rouble zone arose only after the restoration of independence on 20 August 1991. The second period (which had no theoretical connection to the first period) was first and foremost the sum of successful ad hoc decisions. The current paper is an attempt to analyse why such decisions were made by Estonian authorities.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Tallinn School of Economics and Business Administration, Tallinn University of Technology in its series Working Papers with number 163.

    in new window

    Length: 19
    Date of creation: 2007
    Publication status: Published in Working Papers in Economics.School of Economics and Business Administration,Tallinn University of Technology (TUTWPE), Pages 5-23
    Handle: RePEc:ttu:wpaper:163
    Contact details of provider: Postal:
    Kopli tn. 101, 11712 Tallinn

    Phone: +(372)620 3535
    Fax: +(372)620 3946
    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. Urmas Sepp & Raoul Lättemäe & Martti Randveer, 2002. "The History and Sustainability of the CBA in Estonia," Macroeconomics 0212002, EconWPA.
    2. Iikka Korhonen, 2000. "Currency Boards in the Baltic Countries: What Have We Learned?," Post-Communist Economies, Taylor & Francis Journals, vol. 12(1), pages 25-46.
    3. Schrader, Klaus, 1994. "Estland auf dem Weg zur Marktwirtschaft: eine Zwischenbilanz," Kiel Discussion Papers 226, Kiel Institute for the World Economy (IfW).
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ttu:wpaper:163. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Urve Venesaar)

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.