Download or read book Exchange rate arrangements of accession countries in their run up to EMU written by Vladimir Lavrač and published by . This book was released on 2002 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Maastricht and the Choice of Exchange Rate Regime in Transition Countries During the Run up to EMU written by György Szapáry and published by . This book was released on 2001 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Monetary aspects of enlargement Central and Eastern Europe EMU and the ERM 2 written by Ulrich Machold and published by GRIN Verlag. This book was released on 2003-01-04 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2002 in the subject Economics - Monetary theory and policy, grade: 1.0 (A), Technical University of Berlin (-), language: English, abstract: A rough 50 years after its foundation, the European Union (EU) is preparing for the probably most ambitious challenge of its existence, the binding-back into the West of the once centrally-planned economies of Central and Eastern Europe (CEEC). Together with political and general economic efforts, European monetary integration also gains speed with as many as twelve CEEC queuing up for entry into the EU (not including Turkey, which has not yet officially begun entry negotiations), the first of them most likely joining the Union already two years after the physical introduction of the single currency, i.e. in 2004. Many of these countries are eager to also join Monetary Union (EMU) and show their ability to be ′good Europeans′ by adopting the Euro as soon as possible. Various statements by both CEEC-government officials and monetary authorities exemplify this very vividly. This implies that the enlargement of EMU is already a relevant issue. By the time it becomes acute, positions and perspectives of both applicants and current members should be clear, if unnecessary delays and political irritations are to be avoided. The body of literature on the subject is thus as large as the questions of when, how and on what terms CEEC-accession will take place are pressing, and becoming more so as time progresses. This study attempts to coherently examine the core issues related to EMU-enlargement, equally synthesising the various segmented approaches of the academic debate, and deduce normative conclusions as to what strategic outlook should seem appropriate to both CEEC and the current EMU-12: In what timeframe should accession most sensibly take place? How appropriate are the mechanics leading up to EMU, most prominently the Exchange Rate Mechanism (ERM-II) and the Maastricht criteria, and how should they be dealt with? What are the most likely problem areas and deficits that need to be confronted? Since there appears to exist a more or less stable consensus regarding the basic desirability of EMU for the CEEC, the paper will concentrate more on the run-up to full EMU, equally the road to the euro, and place special emphasis on the CEEC′s attitude towards the ERM-II.

Download or read book Implications of EMU for Exchange Rate Policy in Central and Eastern Europe written by Mr.George Kopits and published by International Monetary Fund. This book was released on 1999-01-01 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: In view of the requirements of Stage 2 of European Monetary Union (EMU) for accession to the European Union, this paper examines the desirability for, and the ability of, the lead candidates in Central and Eastern Europe to participate in the new exchange rate mechanism (ERM2) and eventually in EMU. For most of these countries the benefits are likely to outweigh the cost of participation. After successfully meeting the basic conditions (wage flexibility, prudent fiscal and monetary stance, financial system soundness) for ERM2, each candidate should be able to shadow the euro, with sufficient flexibility around the central rate, prior to formal participation. The paper concludes with a discussion of two policy dilemmas.

Download or read book Pros and Cons of Currency Board Arrangements in the Lead Up to EU Accession and Participation in the Euro Zone written by Ms.Anne Marie Gulde and published by International Monetary Fund. This book was released on 2000-02-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Historically, countries with currency board arrangements (CBAs) have experienced lower inflation and higher growth than those with other regimes. The experiences of three candidates for EU membership with CBAs (Estonia, Lithuania, and Bulgaria) have also been generally favorable. Can CBAs serve these transition countries well all the way up to the adoption of the euro? After considering the pros and cons, this paper provides an affirmative answer, but notes that to preserve the viability of their CBAs throughout the process, these countries need to maintain strict policy discipline and be prepared to deal with large capital inflows and asymmetric shocks.

Download or read book How Credible are the Exchange Rate Regimes of the EU Accession Countries Empirical Evidence from Market Sentiments written by Bernhard Herz and published by . This book was released on 2007 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: EU accession countries have strong incentives to stabilize the exchange rate with respect to the Euro as the nominal anchor. We present a microstructure model of the foreign exchange market based on technical trading that allows to categorize the de facto the exchange rate regimes and derive a market based measure of the credibility of these exchange rate regimes. We empirically determine the de facto exchange rate regimes of EU accession countries and test their credibility as assessed by the market participants. In the run-up to EU accession most CEEC have reached high credibility in their exchange rate management. However, some of the future EU and EMU participants will have to strengthen their efforts and further focus their exchange rate policy on stabilizing the Euro exchange rate.

Download or read book Monetary and Exchange Rate Policy of Transition Economies of Central and Eastern Europe after the Launch of EMU written by Mr.Paul R. Masson and published by International Monetary Fund. This book was released on 1999-07-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: The more advanced Central and Eastern European Countries (CEECs) face an evolving set of considerations in choosing their exchange rate policies. On the one hand, capital mobility is increasing, and this imposes additional constraints on fixed exchange rate regimes, while trend real appreciation makes the combination of low inflation and exchange rate stability problematic. On the other hand, the objectives of EU and eventual EMU membership make attractive a peg to the euro at some stage in the transition. The paper discusses these conflicting considerations, and considers the feasibility of an alternative monetary framework, inflation targeting.

Download or read book Eurozone Enlargement written by Michael Bolle and published by . This book was released on 2003 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Summary Report reflects outcomes of the research project "The Eastward Enlargement of the Eurozone (Ezoneplus)" that has analysed these challenges with particular emphasis on monetary and fiscal policies, on exchange-rate regimes and on the social dimension of the EMU enlargement process. It will be shown that structural asymmetries in an enlarged currency union will only slowly proceed towards a convergence of welfare states across EU-25. The pace of this process depends largely on the willingness and capability of political decision-makers at all levels to coordinate the policies in question.

Download or read book Options for the Exchange Rate Policies of the EU Accession Countries and Other Emerging Market Economies written by Peter Bofinger and published by . This book was released on 2000 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Who Needs Bands Exchange Rate Policy Before Emu written by Tamim A. Bayoumi and published by International Monetary Fund. This book was released on 1995-04 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Two issues are discussed. The first is which countries might benefit from entry into EMU before the millennium. Germany and her immediate neighbors appear the most likely to gain; however, our knowledge is too uncertain to say whether all, some, or no countries would reap net economic benefits. The second issue is how to avoid exchange rate instability in the transition to EMU. Experience from earlier exchange rate regimes suggests that an early announcement the parities at which different currencies would enter EMU could reduce such instability if governments were willing to accept the required limitations on domestic policies.

Download or read book Exchange Rates are a Matter of Common Concern written by Zenon G. Kontolemis and published by . This book was released on 2003 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recoge: 1. Introduction - 2. Exchange rate stability is good anyway - 3. Exchange rate bands: an insurance policy for EMU - 4. The ERM as a policy coordination tool - 5. Monetary and exchange rate policy in EMU: a case of learning by doing? - 6. Are there risks, and can policies help? - 7. Some conclusions.

Download or read book Nominal and Real Convergence in Alternative Exchange Rate Regimes in Transition Countries Implications for the EMU Accession written by and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Exchange Rate Regimes of Central and Eastern European EU Candidate Countries on Their Way to EMU written by Vladimir Lavrač and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book International Currency Arrangements and Policies written by Julius Horváth and published by Nova Publishers. This book was released on 2006 with total page 130 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book deals with exchange rate arrangements and exchange rate policies. Chapter 2 classifies exchange rates into flexible, intermediate and rigid arrangements. The book is subdivided into an arrangement of free float, managed float, pegged but adjustable, target zone, crawling peg, hard peg, currency board, dollarisation, and monetary union. This chapter also discusses hypothesis of vanishing intermediate exchange rate arrangements as well as it deals with differentiation between de jure, and de facto exchange rate arrangements. Chapter 3 deals with the issue of choosing an appropriate exchange rate arrangement. The book briefly characterises basic approaches of how to choose an exchange rate regime. Furthermore, the book reviews considerations stemming from the optimum currency area literature. Chapter 4 deals with problems of exchange rate, which were encountered by the most developed transition countries. After discussing the initial stabilisation problems of the early 1990s, it provides a general overview of the macroeconomic situation and exchange rates arrangements in these countries in the period 1990-2004. Also the book discusses issues connected with the future introduction of the euro into these countries. Chapter 5 provides the reader with two case studies. First, a discussion of the Czech experience in the transition period till the crisis in May 1997 is presented. Second, a discussion of the Hungarian experience concerning banking and exchange rate policy in the 1990s till the early years of this century. Finally, Chapter 6 discusses different historical periods from the viewpoint of currency arrangements.

Download or read book New Political Economy of Exchange Rate Policies and the Enlargement of the Eurozone written by Christian H. Fahrholz and published by Springer Science & Business Media. This book was released on 2006-11-17 with total page 157 pages. Available in PDF, EPUB and Kindle. Book excerpt: This work examines the political economy of exchange-rate policies in the eastward expansion of the eurozone. Analysis shows that prospective members of the EMU are likely to pass on some costs of convergence to the current EMU members. The mechanism is an altered exchange-rate policy that utilizes a "threaten-thy-neighbour" strategy. This could ensure a stabilization of the CEECs' convergence toward the EMU, and a successful eastward enlargement of the eurozone.

Download or read book Evolution and Performance of Exchange Rate Regimes written by Mr.Kenneth Rogoff and published by International Monetary Fund. This book was released on 2003-12-01 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using recent advances in the classification of exchange rate regimes, this paper finds no support for the popular bipolar view that countries will tend over time to move to the polar extremes of free float or rigid peg. Rather, intermediate regimes have shown remarkable durability. The analysis suggests that as economies mature, the value of exchange rate flexibility rises. For countries at a relatively early stage of financial development and integration, fixed or relatively rigid regimes appear to offer some anti-inflation credibility gain without compromising growth objectives. As countries develop economically and institutionally, there appear to be considerable benefits to more flexible regimes. For developed countries that are not in a currency union, relatively flexible exchange rate regimes appear to offer higher growth without any cost in credibility.

Download or read book Sustainable Regimes of Capital Movements in Accession Countries written by David Begg and published by Centre for Economic Policy Research. This book was released on 2002 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt: The European Union is now preparing for the entry of ten new members. As the accession countries (ACs) embark on the next phase of the path toward formal entry into the EU, most are expected to join the Exchange Rate Mechanism (ERM-II), prior to adoption of the euro. This period will be a time of heightened vulnerability to financial instability, requiring extremely adept economic management. With limited exchange rate flexibility under ERM-II, disinflationary conditions, and no exemptions from full international capital mobility, EU accession countries are likely to experience large 'convergence play' capital inflows - such inflows arise because investment opportunities are large but domestic savings are small and the domestic financial system is still developing; and because a rising real exchange rate offers the prospect of attractive returns - alarmingly, large capital inflows figured in virtually every financial crisis of the 1990s.Building on the lessons learned from past financial crises, CEPR Policy Paper 10 makes the following observations and recommendations for accession countries as they negotiate the tricky path to global financial integration and monetary union: *Although ERM-II may be compatible with many exchange rate regimes, from currency boards to relatively wide bands, its central characteristic as a fixed but adjustable regime without the protection of capital controls makes it an interim stage of some danger. Whatever prudential supervisory arrangements are adequate for Western European financial institutions may not be sufficient for financial institutions in accession countries. This stage therefore requires a period of even longer prudential supervision. *The Report's analysis indicates that real exchange rates will still be appreciating during the ERM-II phase. If there is pressure for ACs' exchange rates to remain within invisible bands the result will be additional and unnecessary inflation. Since low inflation is a requirement of the Maastricht criteria, ERM-II may therefore impede entry to the euro.*The dangerous combination of high capital mobility and an intermediate exchange rate peg could be avoided if ACs were to unilaterally adopt the euro without becoming full members of the euro area. This makes sense for countries that are seeking fast entry into the euro area, and which have achieved fiscal responsibility, price stability and a sound banking sector. *Official readings of the Maastricht Treaty rule out unilateral euroization. At the moment it is necessary for ACs to join the euro area by the same process as the current members. These conditions include the attainment of low inflation and sustainable public finances and the requirement not to devalue the central parity within two years adoption of the euro. *Viewed in isolation, these requirements make little sense. What was necessary to establish the rules of the game is not necessary once the rules have been in place for some time. To believe it wise to make all ACs undergo this process, it is necessary to disregard the experience of the 1990s currency crises that were associated with intermediate exchange pegs.*The authors argue that the economic case for unilateral euroization is strong enough for the European authorities to reconsider this option.