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N° 102 |
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| Issue 2, 2005 |
| Which
Exchange Rate Regime in Central European Countries? |
| Patrick Artus |
|
| The paper first compares
the monetary and exchange-rate policies conducted in the CEECs and by one of the
neighbouring countries of the United States (Mexico). It is shown that Mexico
has implemented reasonably expansionary policies, boosting production while avoiding
financial imbalances and inflation, whereas in the CEECs policies are more rigid,
and have led to the appearance of imbalances. The paper discusses possible causes
of these differences, other than the exchange rate strategy of the countries.
It uses a theoretical two-country model (a “large” country and a “small”
country) to analyse the optimal exchange-rate policy in the small country. |
Abstract |
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Full Text |
| Exchange
Rate; Monetary Policy |
Keywords |
| E52;
F31 |
JEL classification |
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Order form |
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