The rule bounded currency board-system is a contribution to a process of convergence between the price level of the currency board-country and the anchor currency-country. However this strategy includes the risk of an inadequate provision with liquidity in the currency board-country. In the long...

On its way to become a member of the European Monetary Union (EMU) Estonia needs to participate in the new European Exchange Rate Mechanism (ERM II). The need to participate in this Exchange Rate Mechanism arises quite simply from the necessity of being treated equally with the countries already...