Open AccessThe choice of an exchange rate regime: Outcomes and constraints
Author(s) -
T Srdjan Marinkovic
Publication year - 2006
Publication title -
economic annals/ekonomski anali
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.148
H-Index - 12
eISSN - 1820-7375
pISSN - 0013-3264
DOI - 10.2298/eka0668073m
Subject(s) - exchange rate , economics , politics , welfare , stability (learning theory) , international economics , public economics , economic welfare , macroeconomics , political science , market economy , machine learning , computer science , law
An inappropriate exchange rate policy is likely to undermine overall efforts to transform the economy. Namely, it is now well accepted either at the theoretical or policy level that situations of real exchange rate misalignment could be translated into important welfare costs. This country study highlights "irrelevancy" of the stability criteria when slow growth recovery threatens to endanger even social roots of determination for reform. We discuss foreign exchange policy and other related policy measures that are likely to align economic and political goals inside a trade-off between stability and growth