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Fixed exchange rates or a crawling peg, i.e. pre-announced, step-wise devaluations, have been introduced in Poland, Hungary, the Czech and Slovak Republics and Croatia. Estonia has pegged the exchange rate of the kroon to the D-Mark via a so-called currency board. For a summary cf. R. Sahay and C. Végh, Inflation and Stabilization in Transition Economies: A Comparison with Market Economies,IMF Working Paper, January 1995; cf. also S. Rebelo and C. V égh, Real Effects of Exchange-Rate-Based Stabilisation: An Analysis of Competing Theories.CEPR Discussion Papers, no. 1220/1995; R. Dornbusch, Lessons from Experiences with High Inflation,The World Bank Economic Review, no. 1/1992; p. 13–31.
Cf. on the risks of an exchange-rate-based stabilisation M. Obstfeld, International Currency Experience: New Lessons and Lessons Relearned,Brookings Papers on Economic Activity, no. 1/1995, pp. 166–176.
According to provisional World Bank figures; unpublished working papers of the World Bank, Washington D.C., 1995.
By comparison, foreign debt as a percentage of GDP in 1993 was as follows: Bulgaria 125%, Hungary 67.5%, Poland 53%, Slovakia 32%, the Czech Republic 27.5%, Romania 18% and Estonia 3.5%; the relation between foreign debt and goods exports in 1993 was: Poland 283%, Bulgaria 236%, Hungary 228%, Romania 78%, Slovakia 44.8%, the Czech Republic 44.5% and Estonia 18.5% . Cf. World Bank, World Debt Tables, 1994–95, Washington D.C., 1994.
The liabilities to the former CMEA countries amounted to around 19 billion transfer-rouble at the end of 1991, of which around 7 billion were with Poland, 6.3 billion with the former GDR, and around 2 billion each with the former Czechoslovakia and Hungary. Cf. B. V. Christensen, The Russian Federation in Transition. External Developments,IMF Occasional Papers 111, Washington D.C., 1994.
Cf.Ross. Vesti, 20 September 1994.
Cf.Financial Times, 17 November 1995.
Cf.Financial Times, 17 November 1995.
One of the disadvantages of this approach is that it fails to distinguish between risk-induced capital outflows and portfolio investment On this and other approaches cf. Nathan Sheets, Capital Flight from the Countries in Transition,International Finance Discussion Paper, no. 514/1995, Washington D.C.
Other estimates suggest that the monthly rate could be twice as high; cf. The World Bank: Transition, no. 7–8/1995, Washington D.C, p. 17.
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The economic situation in Russia. Economic Bulletin 33, 3–14 (1996). https://doi.org/10.1007/BF02234059
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DOI: https://doi.org/10.1007/BF02234059