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The Choice of Exchange Rate Regimes for EU Accession Countries

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  • Kirrane, Chris

Abstract

This article examines the institutional changes of Central Banks and the exchange rate regimes of Eastern European countries joining the EU. Current regimes and how they need to evolve in order to meet the entry criteria of the EU and EMU are looked at. In addition, the degree to which the candidate countries meet the accession criteria and compare them with the performance of the latest EU entrants will be studied. After concluding that the accession criteria do not necessarily favour a particular exchange rate regime, the pros and cons of the two plans considered as the most stable, currency board and inflation target will be analysed. Under these two regimes, the respect of the criteria of low inflation and exchange rate stability is likely to produce strong tensions.

Suggested Citation

  • Kirrane, Chris, 2003. "The Choice of Exchange Rate Regimes for EU Accession Countries," MPRA Paper 88877, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:88877
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    Cited by:

    1. Yannis, Athena & Foscoulou, Kostos, 2004. "Exclusions from EMU," MPRA Paper 90307, University Library of Munich, Germany.
    2. Mertens, Johan, 2005. "The Euro and European Identity," MPRA Paper 90619, University Library of Munich, Germany.
    3. Yannis, Athena, 2004. "External constraints and EMU," MPRA Paper 90308, University Library of Munich, Germany.
    4. Yudhistira, Bintang, 2018. "The Effects of Financial Crises on Developing Countries," MPRA Paper 91883, University Library of Munich, Germany.
    5. Yeoh, Amber, 2006. "EU Relations with the IMF," MPRA Paper 92755, University Library of Munich, Germany.
    6. Didier, Marcel, 2004. "The French Franc and European Monetary Crisis," MPRA Paper 90504, University Library of Munich, Germany.
    7. Leandros, Panayota, 2005. "The Euro as an International Currency," MPRA Paper 91393, University Library of Munich, Germany.

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    More about this item

    Keywords

    Exchange rate regimes;

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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