CEU Electronic Theses and Dissertations, 2011
| Author | Bandasz, Krzysztof |
|---|---|
| Title | Monetary Union and Floating Exchange Rate as Factors Affecting Economic Processes in an External Economic Crisis: A Comparative Study of Poland and Slovakia |
| Summary | This thesis examines the impact of different exchange rate regimes on economic conditions during an external economic shock. It focuses on the recent global recession of 2009 and analyses its impact on two emerging market economies: Poland and Slovakia. These countries share many similarities, such as location, main trade partners and the general level of development. However, they adopted radically different currency arrangements, which determined the way their economies were influenced by the economic turmoil. The thesis presents how the exchange rate regimes diverged in both countries during the pre-crisis years. It examines the role of the foreign loans and the export structure as potential factors influencing the Slovak and Polish economies. Several economic indicators are analysed and compared, including trade balance, inflation, conditions in the tourism sector and credibility with the investor community. The analyses are based on the exchange rate regime theories, which are briefly presented in the paper. The thesis argues that Poland substantially benefited from its monetary autonomy and the depreciation of the Polish Zloty. The weaker currency triggered a significant expenditure switching effect and improved balance of trade. The membership in the eurozone had a blurred impact on Slovakia, it increased stability and credibility, however, it did not allow nominal adjustments to cushion the real economy. |
| Supervisor | Csaba László |
| Department | International Relations MA |
| Full text | https://www.etd.ceu.edu/2011/bandasz_krzysztof.pdf |
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