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Exchange rate policy in central and Eastern European countries

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Abstract
The Central and Eastern European Countries (CEEC) which joined the European Union between 2004 and 2007 show an interesting evolution of their exchange rate regimes. Although they all started from a comparable situation and have the common long-term goal of joining European Monetary Union, they opted for different exchange rate policies. Furthermore, the exchange rate policies were subject to frequent changes and adjustments. We first describe the evolution of exchange rate arrangements in CEEC, and survey in this paper various aspects of their exchange rate policy. We start with the discussion of differences between de facto and de jure exchange rate regimes. Second, we analyze the impact of exchange rate policy on exchange rate volatility, focusing on structural breaks or volatility regimes. While the level of volatility shows the external dimension of monetary stability, the break points may help to understand the processes that lead to changes in exchange rate arrangements. Third, we highlight the role of CEEC's exchange rates in monetary policy rules. Finally we review the literature on central bank interventions in CEEC.
Keywords
exchange rate policy, transition economies, European Union, Central and Eastern European Countries

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Chicago
Frömmel, Michael, and Frederick Van Gysegem. 2011. “Exchange Rate Policy in Central and Eastern European Countries.” In Exchange Rates : Policies, Effects and Fluctuations, ed. Natalie B Perkins , 25–46. Nova Science Publishers, Inc.
APA
Frömmel, M., & Van Gysegem, F. (2011). Exchange rate policy in central and Eastern European countries. In N. B. Perkins (Ed.), Exchange rates : policies, effects and fluctuations (pp. 25–46). Nova Science Publishers, Inc.
Vancouver
1.
Frömmel M, Van Gysegem F. Exchange rate policy in central and Eastern European countries. In: Perkins NB, editor. Exchange rates : policies, effects and fluctuations. Nova Science Publishers, Inc.; 2011. p. 25–46.
MLA
Frömmel, Michael, and Frederick Van Gysegem. “Exchange Rate Policy in Central and Eastern European Countries.” Exchange Rates : Policies, Effects and Fluctuations. Ed. Natalie B Perkins . Nova Science Publishers, Inc., 2011. 25–46. Print.
@incollection{1989225,
  abstract     = {The Central and Eastern European Countries (CEEC) which joined the European Union between 2004 and 2007 show an interesting evolution of their exchange rate regimes. Although they all started from a comparable situation and have the common long-term goal of joining European Monetary Union, they opted for different exchange rate policies. Furthermore, the exchange rate policies were subject to frequent changes and adjustments. We first describe the evolution of exchange rate arrangements in CEEC, and survey in this paper various aspects of their exchange rate policy. We start with the discussion of differences between de facto and de jure exchange rate regimes. Second, we analyze the impact of exchange rate policy on exchange rate volatility, focusing on structural breaks or volatility regimes. While the level of volatility shows the external dimension of monetary stability, the break points may help to understand the processes that lead to changes in exchange rate arrangements. Third, we highlight the role of CEEC's exchange rates in monetary policy rules. Finally we review the literature on central bank interventions in CEEC.},
  author       = {Frömmel, Michael and Van Gysegem, Frederick},
  booktitle    = {Exchange rates : policies, effects and fluctuations},
  editor       = {Perkins , Natalie B},
  isbn         = {9781612095059},
  keywords     = {exchange rate policy,transition economies,European Union,Central and Eastern European Countries},
  language     = {eng},
  pages        = {25--46},
  publisher    = {Nova Science Publishers, Inc.},
  title        = {Exchange rate policy in central and Eastern European countries},
  year         = {2011},
}