The paper develops a model of exchange rate regime choice centered on the trade-off between internal price stability and external competitiveness and allowing for institutional costs of altering exchange rate arrangements. The main implication of the model is a nonlinear relationship between the...

Im Falle der Transformationsländer Mittel- und Osteuropas formierte sich 1989/90 parallel zu den wirtschaftspolitischen Empfehlungen der Neoklassik ein alternativer monetärkeynesianischer Ansatz in Form der Berliner Schule. Die Politikempfehlung der Berliner Schule lautete Währungsreform und...

This paper examines how various approaches to monetary policy in Poland, Hungary and the Czech Republic during the period 1995-1999 influence the trend and the stability of real exchange rates. It argues that, in contrast to the Polish and the Czech systems, the Hungarian commitment to exchange...

What is the appropriate exchange rate regime for the emerging economies of Eastern Europe? Would a given regime suit all of them equally? Is there a regime that is as appropriate for the transition as for the long run? What are the relative merits of fixed and flexible rates in this context and...

Paper attempts to develop a model suitable for an analysis of the real exchange rate determination in transition economies. The main distinction from other approaches to the real exchange rate determination is an introduction of the pre-transition period which enables one to separately examine...