Handbook of the International Political Economy of Monetary Relations
Show Less

Handbook of the International Political Economy of Monetary Relations

Edited by Thomas Oatley and W. Kindred Winecoff

This extensive Handbook provides an in-depth exploration of the political economy dynamics associated with the international monetary and financial systems. Leading experts offer a fresh take on research into the interaction between system structure, the self-interest of private firms, the political institutions within which governments make policy, and the ideas that influence beliefs about appropriate policy responses. Crucially they also assess how these factors have shaped the political economy of various facets of monetary and financial systems.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 11: Exchange rates in transition economies

Jana Grittersová


Over the last 20 years, the transformation of centrally planned economies has held great attraction for both economists and political scientists. The exchange rate and monetary strategies are particularly interesting due to their role in economic development in the post-communist region. Under the command economy, the exchange rate served as an accounting unit for statistical purposes, but it had a very limited impact on actual trade flows (Radzyner and Riesinger 1996, 20). After the collapse of the Soviet-type socialist system, market institutions were virtually non-existent, and market mechanisms were weak or absent. In this context, the exchange rate has served as the most important asset price. The choice of exchange rate regime, between fixed and floating exchange rates, has been a key macroeconomic policy decision in post-communist countries, albeit a highly contested one (Pomfret 2003, 600). The question of exchange rate regime choice in Eastern Europe (EE) is intriguing because in spite of the (arguably) similar starting point, transition countries adopted rather diverse exchange rate regimes, ranging from free floats to currency boards, and they experienced several regime shifts. These shifts were the result of proactive policy management as well as forced changes related to financial crises. Sharply different regimes continue to coexist, so exchange rate regimes in the transition region exhibit a degree of heterogeneity both across countries and over time.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.