Taking Stock of Monetary and Exchange Rate Regimes in Emerging Europe

By Nazim Belhocine, Ernesto Crivelli, Nan Geng, Tiberiu Scutaru, Johannes Wiegand, Zaijin Zhan

November 29, 2016

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Format: Chicago

Nazim Belhocine, Ernesto Crivelli, Nan Geng, Tiberiu Scutaru, Johannes Wiegand, and Zaijin Zhan. Taking Stock of Monetary and Exchange Rate Regimes in Emerging Europe, (USA: International Monetary Fund, 2016) accessed September 19, 2024

Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The demands on monetary and exchange rate regimes in CESEE have evolved, in line with the region’s development. In the 1990s, the immediate challenge was to rein in excessive inflation following transition, and to establish basic monetary order. These objectives have been achieved, owing largely to successful exchange rate–based stabilization. With this accomplished, the focus has shifted to cyclical monetary management, and to appropriately managing monetary conditions during CESEE’s growth and income convergence to the euro area. Flexible exchange rates—and the ensuing capacity of monetary conditions to adapt to the economies’ needs—are likely to remain advantages, especially to extent that CESEE’s GDP and income levels will resume convergence to the euro area. Once this process restarts, tighter monetary conditions will again be needed to limit goods and asset price inflation, and to contain growth imbalances.

Subject: Conventional peg, Currencies, Exchange rate arrangements, Exchange rate flexibility, Foreign exchange, Inflation, Money, Prices

Keywords: Baltics, Carry trade, CESEE economy, Conventional peg, Currencies, DP, DPPP, Europe, Exchange rate arrangements, Exchange rate flexibility, Exchange rate flexibility, Exchange rate regime, Financial crisis, Foreign currency, Global, Inflation, Inflation targeting, Monetary policy, Stabilization program, Western Europe

Publication Details

Pages:

52
Volume:

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DOI:

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Issue:

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Series:

Departmental Paper No. 2016/012
Stock No:

TSMERREEEA
ISBN:

9781475556629
ISSN:

2616-5333

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