CEU Electronic Theses and Dissertations, 2007
| Author | Calmuc, Rodica |
|---|---|
| Title | THE CHOICE OF EXCHANGE RATE REGIMES: IMPLICATIONS FOR THE CENTRAL AND EASTERN EUROPEAN COUNTRIES |
| Summary | The thesis analyzes the impact of exchange rate regimes on inflation, output growth and fiscal discipline in ten Central and Eastern European countries. To this aim, a sample of ten Central and Eastern European countries for the 1994Q1 – 2006Q2 period, the system GMM methodology for dynamic panel data and various exchange rate classifications are employed. All macroeconomic and econometric aspects considered, the results suggest that flexible exchange rate regimes promote lower inflation rates although they may allow for greater fiscal discretion. The strong hold on inflation and/or a potential expansionary fiscal policy induces, under floating regimes, higher interest rates and exchange rate appreciation, thus nullifying the growth stimulus from a growth enhancing fiscal stance or from lower economic uncertainty due to price stability. Thus, the floats appear to be less effective in encouraging economic growth as compared to the more rigid currency arrangements. |
| Supervisor | Chassamboulli Andri; Horvath Julius |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2007/c05car01.pdf |
Visit the CEU Library.
© 2007-2021, Central European University