engleski

Exchange Rate and Monetary Policy in Accession to the European Monetary Union

The aim of this paper is to assess different exchange rate policy choices that the transition countries face during their accession to the EU. Since the main goal of these countries is the entry into the EU, they have to adhere to the EU rules and criteria, including those relating to the common monetary policy. There are, however, a number of monetary and exchange rate policy choices for the transition countries, both prior and after joining the EU. The basic dilemma is whether to fix the exchange rate to euro and thus abandon independent monetary policy, or keep flexible exchange rate and use monetary policy for smoothing the convergence to the EU. This choice depends on the circumstances of each country.

monetary and exchange rate policy ; transition

nije evidentirano