engleski

Anchor Based Monetary Policies in Transition Countries

High public expectations from monetary policies in countries accessing European Union membership resulting from demands for fast and successful completion of accession process caused numerous analyses and critics of national policy choice(s). During the accession period countries in transition generally used monetary policies based on some nominal variable, so empowers of their policies depended on the choice of an anchor. The trend that can be monitored is the substitution of the rigid regimes (generally based on the exchange rate) with more flexible but also more demanding regimes (mostly based on inflation rate). The paper analyses use of anchor based monetary policies on the examples of transition countries that have already became members of the Union (CEEC – 5) and those that are still in the accession process, Bulgaria and Croatia, comparing their policies and results in obtaining national economy goals. Special attention is given to the question of the relationship between the success in accession process and national monetary policy choice, measuring the readiness of the country to become a member of the monetary union and common market using the real convergence criteria.

European Union; monetary anchors; convergence process

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