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

Gunther Schnabl

International Finance from University Library of Munich, Germany

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.

Keywords: Foreign Exchange Policy; EMU; Euro Zone; Central and Eastern Europe (search for similar items in EconPapers)
JEL-codes: F3 F33 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2004-04-20
New Economics Papers: this item is included in nep-ifn and nep-tra
Note: Type of Document - pdf; pages: 20
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Related works:
Journal Article: De jure versus de facto Exchange Rate Stabilization in Central and Eastern Europe (2004)
Working Paper: De jure versus de facto: Exchange rate stabilization in Central and Eastern Europe (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpif:0404013

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