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The evolution of east-west trade and the role of the Ecu in Eastern Europe

  • Monetary Issues
  • Published:
MOST: Economic Policy in Transitional Economies

Conclusion

This paper arrives at the conclusion that the expanding European Community is a dominant attraction for Eastern Europe, including the former USSR. Since the Community will have privileged trade arrangements with most, if not all, of Eastern Europe, optimal monetary solutions will be strongly influenced by trade relations. The future Western European currency therefore, is also playing a dominant role in the monetary choices of Eastern Europe. We have discussed several aspects of this choice (anchor of the exchange rate regime, management of foreign reserves, parallel currency and currency of a possible payments union) and conclude that the Ecu is the dominant contender.

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References

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  • Steinherr A. (1989), “EMS and Ecu: Proposals for Developing their Synergy”, in De Grauwe P. and T. Peeters,The Ecu and European Monetary Integration, Macmillan, London.

  • Steinherr A. et al (1990), “Reforms in Eastern Europe and the role of the Ecu”,Ecu Banking Association, Paris, June.

  • Steinherr A. and E. Perée (1991),Investing in Ecu in Ch. Johnson (Ed.) “Ecu — The Currency of Europe”,Euromoney, London.

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Authors and Affiliations

  1. European Investment Bank, Luxembourg

    Alfred Steinherr (Director of Financial Research Department)

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  1. Alfred Steinherr
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Steinherr, A. The evolution of east-west trade and the role of the Ecu in Eastern Europe. MOCT-MOST 2, 3–15 (1992). https://doi.org/10.1007/BF01101436

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  • DOI: https://doi.org/10.1007/BF01101436

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