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considerable difficulties faced by Hungary with the fulfillment of the Maastricht criteria. This is a puzzling development for two … reasons: first, during the early phase of the transition process Hungary was way ahead of Slovakia, and second, the high level … might prove temporary similarly to that of Hungary in the 1990s. The loss of an external disciplining force after Slovakia …
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This paper tests whether the exchange rates of the Czech koruna, the Hungarian forint, and the Polish zloty were anchored by market expectations concerning their euro locking rates. First, the process of the exchange rate is derived as a function of the following factors: (i) latent exchange...
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