Exchange Rate Policy Tensions: A Comparative Study between North Africa and Central & Eastern Europe

Ali Massoud and Julius Horvath

Applied Economics and Finance, 2015, vol. 2, issue 4, 25-35

Abstract: The performance of small open economies depends - to an extent - on the tension between government¡¯s economic policy preferences and actual behavior. This tension can be nicely studied by analyzing the behavior of exchange rates, where one observes tensions between proclaimed de jure and de facto exchange rate policies. Typically a country makes a de jure commitment to a peg if it attempts to persuade markets of its strict monetary-policy priorities; similarly a country makes a de jure commitment to a float if it wants to keep monetary policy in its own hands. In this paper we measure the flexibility of exchange rate which partially helps in deciphering the de facto behavior. For this purpose, we use comparative data of two sets of countries: North African as well as Central and Eastern European.

Keywords: Exchange rate policy; de facto exchange rate regimes; and exchange market pressure (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
http://redfame.com/journal/index.php/aef/article/view/1030/956 (application/pdf)
http://redfame.com/journal/index.php/aef/article/view/1030 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rfa:aefjnl:v:2:y:2015:i:4:p:25-35

Access Statistics for this article

More articles in Applied Economics and Finance from Redfame publishing Contact information at EDIRC.
Bibliographic data for series maintained by Redfame publishing ().