The purpose of the conference is to present theoretical and empirical analyses on exchange rate policies and the choice of exchange rate regime in pre-accession economies during the enlargement of the European Union. Exchange rate policies have a decisive effect on macroeconomic performance, on nominal and real convergence of pre-accession economies, and can strongly influence the costs and speed of enlargement. Due to the different weight given to the costs and benefits of alternative regimes, the debate on the choice of appropriate regime prior full EMU-membership remains a key one.
The conference will have four major parts. First section will present theoretical papers discussing the costs and benefits of alternative exchange rate regimes and the factors that affect the choice between them. The second part of the conference will feature presentations on the recent experiences of pre-accession economies with alternative exchange rate arrangements and lessons from their exchange rate policies. As the regimes varied between the individual economies, this will give scope for comparative assessment.
Third, the conference will analyse how the process of monetary integration, the presence of exogenous shocks (capital flows, current account sustainability, exposure to global trade and financial contagion, high risk premia, etc.) may affect exchange rate policies and the choice of exchange rate regime in pre-accession economies. Finally, the conference will feature papers describing both theoretically and then, based on the individual economies, empirically the most appropriate choices of exchange rate regime. The conference will include both theoretical and empirical papers, and summary papers on the choice of exchange rate regime to enhance the training aspect of the event.