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Exchange-rate System between the Czech and Slovak Republics

  • Katerina Smidkova

    (Czech National Bank)

In 1992, the political dissolution of Czechoslovakia highlighted the problem of designing monetary disintegration for two interdependent republics. In this study, the exchange-rate system of the two newly established currencies that was an analogy to the currency union was described. The newly gained potential of independence in monetary and exchange-rate policies was analyzed in this context. The study assessed costs and benefits of the gradual approach to monetary disintegration that was applied in the Czech-Slovak case. The analysis suggested that the careful design with two intermediate stages was superior to a longer maintaining of a common currency or a sudden monetary disintegration.

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File URL: http://econwpa.repec.org/eps/mac/papers/0304/0304004.pdf
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Paper provided by EconWPA in its series Macroeconomics with number 0304004.

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Length: 20 pages
Date of creation: 11 Apr 2003
Date of revision:
Handle: RePEc:wpa:wuwpma:0304004
Note: Type of Document - ; pages: 20 . IE CNB Working paper 1994/16
Contact details of provider: Web page: http://econwpa.repec.org

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  1. Eichengreen, Barry, 1990. "One Money for Europe? Lessons from the US Currency Union," Department of Economics, Working Paper Series qt6ks1k831, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  2. Frankel, Jeffrey A & Rockett, Katharine E, 1988. "International Macroeconomic Policy Coordination When Policymakers Do Not Agree on the True Model," American Economic Review, American Economic Association, vol. 78(3), pages 318-40, June.
  3. Bofinger, Peter, 1990. "A Multilateral Payments Union for Eastern Europe?," CEPR Discussion Papers 458, C.E.P.R. Discussion Papers.
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