Lecture | L-PEG Lunch Research Seminar
Setting Sights on EU Accession: The Beginnings of Monetary Coordination in Central and Eastern Europe
- Friday 13 December 2019
Matthias de Vrieshof
Matthias de Vrieshof 4
2311 BZ Leiden
Please register in advance at email@example.com to receive a copy of the paper & lunch.
Between 1999 and 2003, several countries in Central and Eastern Europe (CEE) transformed their monetary and financial governance frameworks in order to be able to accede the European Union. As they opened up their capital accounts and oriented their exchange rate frameworks towards the euro, coordination with the European Central Bank became an issue for several matters in the accession process. Likewise, increased foreign ownership in the financial sector required mechanisms through which prudential and supervisory measures could be aligned between home and host countries. This first chapter of my thesis aims at investigating the emergence of governance patterns between central banks in CEE before the EU enlargement in 2004. I expect to find that the loss of policy instruments that resulted from financial liberalization was not sufficiently offset by coordination mechanisms. As a result, governance asymmetries were established and failed to contain destabilizing credit growth in several countries.