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Is Exchange Rate Regime Relevant for Transition from Plan to Market?
Laszlo Halpern 서울대학교 경제연구소 2008 Seoul journal of economics Vol.21 No.2
This paper offers guidelines to the future transformation of North Korea from the perspective of the exchange rate regime. For this reason first the paper reviews the relevant features of exchange rate regimes during the first period of transition from plan until the foundation of the major institutions of a market economy. The embarrassingly rich diversity does not explain success or failure, but permits analyzing the evolving role of exchange rate from fighting hyperinflation to arrive at a sustainable inflation with the possibility to join monetary integration. More specifically, exchange rate regimes of Hungary, Vietnam and the German reunification are analyzed. Finally, the options for North Korea are outlined.