Estonian Monetary System: Reconstruction, Performance, and Future Prospects

Mart Sõrg

No 11/2004, Wirtschaftswissenschaftliche Diskussionspapiere from University of Greifswald, Faculty of Law and Economics

Abstract: Nearly twenty years have passed since the beginning of the transition from the planned economy to the market economy system in Estonia. A successful transition to a market economy requires a sound currency and Estonia introduced its own currency in June 1992. Estonia has been quite successful in achieving economic stability and growth and steadily declining inflation. An essential element of Estonia?s economic development success has been the currency board-based monetary system that has served as a signal of commitment to prudent monetary policy and as a guarantee of sound money during the transition period. We discuss the experience of operating the currency board in Estonia and future prospects of the currency board arrangement in Estonia in the framework of the European Union and the future joining the Economic and Monetary Union.

Keywords: monetary system; currency reform; currency board; monetary policy (search for similar items in EconPapers)
JEL-codes: E42 E5 (search for similar items in EconPapers)
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:grewdp:112004

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