Toward Virtual Exchange-Rate Stability in Western and Eastern Europen with the Advent of EMU

  • Ronald I. McKinnon


With European monetary integration having started as scheduled on January 1, 1999, what should be the exchange-rate rules governing other European countries that want free access to the European common market but that would not, at least at the outset, be part of the common monetary regime? Some Central and Eastern European counties (CEECs) have already applied for membership in the European Union (EU)—the so-called Visegrad-5 consisting of the Czech Republic, Hungary, the Slovak Republic, Slovenia, and Poland. Other CEECs could be considered for EU membership in the not-too-distant future—the Balkan-2 (Bulgaria and Romania), the Baltic-3 (Estonia, Latvia, and Lithuania), and counties like Croatia and other parts of the former Yugoslavia or the former Soviet Union.


Exchange Rate European Union Monetary Policy Real Exchange Rate European Central Bank 
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© Kluwer Academic Publishers 1999

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  • Ronald I. McKinnon

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