Abstract

http://ssrn.com/abstract=951401
 
 

Citations



 


 



Implications of ERM2 for Poland's Monetary Policy


Lucjan T. Orlowski


Sacred Heart University - John F. Welch College of Business

Krzysztof I. Rybinski


Vistula University


Economic Systems, Vol. 30, No. 4, pp. 346-365, December 2006

Abstract:     
We propose an extension to the inflation targeting regime currently pursued by Poland. It incorporates the exchange rate stability constraints as imposed by the obligatory participation in the ERM2 that Poland needs to satisfy prior to adopting the euro. The modified policy is based on the forward-looking inflation targeting supplemented with the exchange rate stability objective. Its effective implementation depends on the determined long-term equilibrium exchange rate and the observed degree of exchange rate volatility. Both are empirically estimated by employing the Johansen cointegration tests and the threshold generalized autoregressive heteroscedasticity model with the in-mean extension and generalized error distribution (TGARCH-M-GED).

Keywords: Inflation targeting, Monetary convergence, ERM2, Euro, Poland, Cointegration, GARCH

JEL Classification: E58, E61, F33, P24

Accepted Paper Series





Not Available For Download

Date posted: December 13, 2006  

Suggested Citation

Orlowski, Lucjan T. and Rybinski, Krzysztof I., Implications of ERM2 for Poland's Monetary Policy. Economic Systems, Vol. 30, No. 4, pp. 346-365, December 2006. Available at SSRN: http://ssrn.com/abstract=951401

Contact Information

Lucjan T. Orlowski (Contact Author)
Sacred Heart University - John F. Welch College of Business ( email )
5151 Park Avenue
Fairfield, CT 06825
United States
203-371-7858 (Phone)
HOME PAGE: http://www.sacredheart.edu/ltorlowski.cfm
Krzysztof I. Rybinski
Vistula University ( email )
Stoklosy 3
Warsaw
Poland
Feedback to SSRN


Paper statistics
Abstract Views: 340

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.281 seconds