Cover Departmental Papers
Taking Stock of Monetary and Exchange Rate Regimes in Emerging Europe
Author:
Nazim Belhocine
Search for other papers by Nazim Belhocine in
Current site
Google Scholar
PubMedClose
,
Ernesto Crivelli
Search for other papers by Ernesto Crivelli in
Current site
Google Scholar
PubMedClose
,
Ms. Nan Geng
Search for other papers by Ms. Nan Geng in
Current site
Google Scholar
PubMedClose
,
Tiberiu Scutaru
Search for other papers by Tiberiu Scutaru in
Current site
Google Scholar
PubMedClose
,
Mr. Johannes Wiegandhttps://isni.org/isni/0000000404811396, International Monetary Fund

Search for other papers by Mr. Johannes Wiegand in
Current site
Google Scholar
PubMedClose
, and
Zaijin Zhan
Search for other papers by Zaijin Zhan in
Current site
Google Scholar
PubMedClose
Series:
Departmental Papers
Volume/Issue:
Volume 2016: Issue 012
Language:
English
Publication Date:
29 Nov 2016
DOI:
https://doi.org/10.5089/9781475556629.087
ISBN:
9781475556629
ISSN:
2616-5333
Pages:
52
Keywords:
DPPP; DP; exchange rate regime; inflation targeting; foreign currency; carry trade; financial crisis; monetary policy; exchange rate flexibility; CESEE economy; stabilization program; Exchange rate flexibility; Exchange rate arrangements; Conventional peg; Inflation; Currencies; Baltics; Global; Western Europe; Europe
Legal-disclaimer:
The Departmental Paper Series presents research by IMF staff on issues of broad regional or cross-country interest. The views expressed in this paper are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1.8 MB) Download Epub
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.
  • Collapse
  • Expand
Cover Departmental Papers
Departmental Papers
ISSN:
2616-5333
Publisher:
International Monetary Fund
Volume 2016: Issue 012