This book offers a brief perspective on some of the key issues of dispute concerning exchange rate policy. It discusses specific characteristics of transition economies that could influence the objectives for exchange rate regime choice and the conflicts among such objectives.
Introduction Part One: Fixed vs Flexible Exchange Rates: The Debate Continues 1. The Case for Hard Currency Strategies for Emerging Market Economies 2. Is Optimum Currency Area Theory Irrelevant for Economies in Transition? 3. The Relevance of the Optimum Currency Area Approach for Exchange Rate Policies in Emerging Market Economies Part Two: Exchange Rate Pegging as an Anti-Inflation Strategy 4. Exchange Rates as Nominal Anchors: An Overview of the Issues 5. Central European Exchange Rate Policy and Inflation 6. The Baltic States: Alternative Routes to Credibility 7. Exchange Rate Based Stabilization Policy in Latin America 8. Is Pegging the Exchange Rate a Cure for Inflation? Part Three: Issues for Exchange Rate Management 9. Intervention Strategy and Purchasing Power Parity 10. Trade and Payments in Eastern European Economic Reform 11. Real Exchange Rate Targeting in Economies in Transition and the Sterilization Problem: The Hungarian Experience Part Four: Currency Areas and Currency Boards 12. Exchange Rate Crises: Are Currency Boards the Answer for Emerging Market Economies? 13. The Estonian Currency Board 14. The Lithuanian Currency Board Part Five: Experiences from the Emerging Market Economies 15. The Czech Case: Fixed Exchange Rates through Stages of Transition 16. Exchange Rate Policy in Hungary Between 1989 and Mid 1995 17. Poland's Exchange Rate Policy in the 1990s 18. An Evaluation of Optimal Currency Areas for the Commonwealth of Independent States