THE COMPARATIVE ANALYSIS OF THE MONETARY POLICY STRATEGIES BEFORE THE ADOPTION OF THE EURO CURRENCY AND THE IMPACT UPON THE MAASTRICHT CRITERIA
THE COMPARATIVE ANALYSIS OF THE MONETARY POLICY STRATEGIES BEFORE THE ADOPTION OF THE EURO CURRENCY AND THE IMPACT UPON THE MAASTRICHT CRITERIA

Summary/Abstract: In the way towards the euro, the monetary and exchange rate policy must follow, in parallel, the achievement of the nominal and real convergence. The purpose of this work paper is the analysis of the monetary policy strategies in Slovenia and Slovakia before the adoption of the euro on two periods: pre-ERM II and ERM II. On the one hand the two forms of the inflation targeting strategy have been efficient in the pre-EMU period through the adjustment of the interest rate so that the real rate would not stimulate the crediting, while on the other hand the monetary authority has followed the reduction of the interest rate differential in order to assure the stability of the exchange rate.

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