Exchange rate regimes in the transition economies: Case study of the Czech Republic: 1990-1997

Abstract

Abstract: In this paper we re-examine the experience of the Czech Republic with the exchange rate regime during the period 1990-97. We review arguments for and against choosing a peg as they appeared in the early 1990s. Then, we evaluate the success of the peg in curbing inflationary pressures stemming from price liberalization. We also show some of its unpleasant consequences. In the second part of the paper we discuss the macroecononomic precedents which most likely led to the abandoning of the peg in May 1997. Finally, we present some thoughts on possible exchange rate developments, especially with respect to a potential future membership in the European Monetary Union. At the beginning of 1990 Czechoslovakia, as well as other socialist economies were at the start of a new experiment. After forty years of socialist economy a reverse process began. Compared to Hungary and Poland, the so called reform socialist economies, the Czech Republic 1 represented an anti-reform strand in the socialist movement in the 1970s and 1980s. This could probably suggest that compared to these two

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 19 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.