Preliminary communication
An out-of-sample assessment of the efficiency of currency boards in European trasition economies
Petya Mihaylova
; American University in Bulgaria, Blagoevgrad, Bulgaria
Numan Ülkü
; American University in Bulgaria, Blagoevgrad, Bulgaria
Abstract
We assess the contribution of the new-generation currency boards (CB) in European transition economies to macroeconomic performance (growth and inflation). Focusing on more recent data to exclude the volatile effects around the launch of the currency board arrangements, we identify the long run contribution of currency boards to growth. This
fills a major gap in the literature as previous studies cannot exclude post-launch effects and results driven by colonial currency boards. We find a (borderline) significant positive (negative) effect of CBs on growth (inflation).
Keywords
currency boards; macroeconomic performance; European transition economies
Hrčak ID:
132525
URI
Publication date:
1.6.2013.
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