An overview of the different types of exchange rate regimes available to a country and their effect on macroeconomic stability, with a focus on Poland and Russia.
Written in 2002; 4,150 words; 8 sources; $ 151.95
Paper Summary:
This paper will look at the role of exchange rate regimes in creating macroeconomic stability and progress towards the development of the market economy. By comparing and contrasting the exchange rate regimes used in both the most and least successful transition economies, it might be possible to isolate their role and provide hints about the most appropriate system for the economies in question. This paper will begin with a very brief discussion on different types of exchange rate regimes available to a country. This will be followed by an application of this knowledge to the post-communist states. The paper will concentrate mostly on Poland and Russia, two countries that provide a good contrast both in terms of the type of exchange rate stabilization program they have used, and also in the relative successes of their transitions to market.
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