Exchange Rate Dynamics across Post-Socialist Economies

Abstract

Abstract Exchange rate dynamics reflect a country’s exchange rate regime, which is part of a monetary policy regime and macroeconomic stability. This chapter analyzes exchange rate dynamics in 28 post-socialist economies (PSEs) in Central and Eastern Europe (CEE) and the former Soviet Union (FSU) by analyzing their monetary policy regimes (MPRs) and macroeconomic stabilization policies carried out immediately after the collapse of the economic system based on central planning and dominant role of a state (social) ownership in the early 1990s and in later stages of post-socialist transformation. Particular attention is given to the de facto MPRs (vs. the declared ones), and progress made in introducing the current-account and capital-account convertibility of PSE currencies. Another thread of an analysis concerns macroeconomic stability performance measured by cumulative consumer price and exchange rate changes in 1999–2022.