01763cas a2200241 a 4500 AALejournalIMF001221 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451851502 1018-5941 BD-DhAAL BD-DhAAL Mendez Morales, Armando. Czech Koruna and Polish Zloty Currency Options : Information Contnent and Eu-Accession Implications / Armando Mendez Morales. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Currency option implied volatility predicts more efficiently exchange rate volatility for the Polish zloty relative to the Czech koruna, reflecting differences in the frequency of central bank intervention in the foreign exchange market. A GARCH model shows a positive impact of the introduction of the Euro on exchange rate volatility for the Polish zloty (negative for the Czech koruna), related to its larger exposure to external shocks. For countries in transition to Euro integration, the implied trade-off between isolation from shocks and efficient signaling must be addressed based on the risk of exchange rate misalignment at the time of monetary conversion. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2000/091 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/091/001.2000.issue-091-en.xml IMF e-Library