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De jure versus de facto Exchange Rate Stabilization in Central and Eastern Europe

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Listed author(s):
  • Gunther Schnabl

    (Tübingen University)

Abstract

The IMF classifications of the Central and Eastern European (CEE) exchange rate arrange-ments are heterogeneous. While one group of countries reports tight pegs to the euro, a second group seems to have moved toward (more) exchange rate flexibility. Based on the recent dis- cussion about the accuracy of IMF exchange rate arrangement classifications, low- and high-frequency exchange rate stability in Central and Eastern Europe is explored. De facto ex-change rate stabilization is found to be much more prevalent in Central and Eastern Europe than suggested by de jure exchange rate classifications. Most of the CEE countries peg their currencies to the euro, thereby contributing to a growing euro zone. Nevertheless, as exchange rate stabilization against the euro is pursued with different degrees and with different long-term drifts, intra-regional exchange rates are still far from being unified.

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File URL: http://econwpa.repec.org/eps/if/papers/0404/0404013.pdf
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Paper provided by EconWPA in its series International Finance with number 0404013.

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Length: 20 pages
Date of creation: 20 Apr 2004
Handle: RePEc:wpa:wuwpif:0404013
Note: Type of Document - pdf; pages: 20
Contact details of provider: Web page: http://econwpa.repec.org

Keywords: Foreign Exchange Policy; EMU; Euro Zone; Central and Eastern Europe;

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Find related papers by JEL classification:
  • F3 - International Economics - - International Finance
  • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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