Belke, Ansgar; Vogel, Lukas:

Monetary Commitment and Structural reforms: A Dynamic Panel Analysis for Transition Economies

In: DIW Diskussionspapiere = Discussion Papers / Deutsches Institut für Wirtschaftsforschung, (2012) ; Nr. 1221, S. 1-23
ISSN: 1433-0210
Zeitschriftenaufsatz / Fach: Wirtschaftswissenschaften
Fakultät für Wirtschaftswissenschaften » Fachgebiet Volkswirtschaftslehre » Makroökonomik
This paper examines the contemporaneous relationship between the exchange rate regime
and structural economic reforms for a sample of CEEC/CIS transition countries. We investigate
empirically whether structural reforms are complements or substitutes for monetary commitment
in the attempt to improve macroeconomic performance. Both EBRD and EFW data
suggest a negative relationship between flexible exchange rate arrangements and external
liberalization. Another finding from the EFW sample is that economic liberalisation has tended
to be stronger under better macroeconomic fundamentals, suggesting that the impact of good
macroeconomic conditions as facilitating structural reforms outweighs countervailing effects
in the sense of lower reform pressure.