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

https://hrcak.srce.hr/146884

Publication date:

24.4.2013.

Article data in other languages: serbian

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