Original scientific paper
Slaviša Tasić
; ISM University of Management and Economics, Vilnius, Lithuania
Abstract
This paper provides an overview of the political economy of alternative exchange rate regimes and discusses the applicability of the fixed exchange rate regime in the Serbian economy. I argue that the current inflation targeting regime has failed and that the fixed exchange rate regime would be more suitable in Serbia, for a number of economic and political reasons. The paper also highlights some persistent misunderstandings and fallacies about the functioning of the fixed exchange rate regime in the present public debate. Contrary to what appears to be the opinion of the majority of Serbian analysts, the fixed exchange rate system is both politically viable and economically superior to the current alternative.
Keywords
currency bord; central bank; monetary policy; foreign currency reserves
Hrčak ID:
146884
URI
Publication date:
24.4.2013.
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