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Brief History of Currency Separation ? Case study of Czech and Slovak Koruna

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  • Klara Cermakova

    (University of Economics in Prague)

Abstract

This paper aims at describing the process of currency separation of Czech and Slovak koruna and its economic and political background, highlights some of its unique features which ensured smooth currency separation, avoided speculation and enabled preservation of the policy of a stable exchange rate and increased confidence in the new monetary systems. This currency separation was higly appreciated and its scenario and legislative background were reccommended by the IMF for use in other countries. The paper aims also to draw conclusions on performance of selected macroeconomic variables of the two successor countries with impact on monetary policy and exchange rates of successor currencies.

Suggested Citation

  • Klara Cermakova, 2017. "Brief History of Currency Separation ? Case study of Czech and Slovak Koruna," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 6(2), pages 30-44, November.
    • Handle: RePEc:sek:jijoes:v:6:y:2017:i:2:p:30-44
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    References listed on IDEAS

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    1. Fidrmuc, Jan & Horvath, Julius & Fidrmuc, Jarko, 1999. "The Stability of Monetary Unions: Lessons from the Breakup of Czechoslovakia," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 753-781, December.
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    More about this item

    Keywords

    currency separation; exchange rate; monetary policy; economic performance; inflation; payment system; central bank;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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