02160cas a2200241 a 4500 AALejournalIMF017550 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475590951 1018-5941 BD-DhAAL BD-DhAAL Slavov, Slavi. Exchange Rate Regimes in Central, Eastern and Southeastern Europe : A Euro Bloc and a Dollar Bloc? / Slavi Slavov. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (31 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 There are 13 countries in Central, Eastern and Southeastern Europe (CESEE) with floating exchange rate regimes, de jure. This paper uses the framework pioneered by Frankel and Wei (1994) and extended in Frankel and Wei (2008) to show that most of them have been tracking either the euro or the US dollar in recent years. Eight countries, all of them current or aspiring EU members, track the euro. Of the five countries keying on the US dollar in various degrees, all but one belong to the Commonwealth of Independent States. The paper shows that the extent to which each country's currency tracks the euro (or the dollar) is correlated with the structure of its external trade and finance. However, some countries appear to track the EUR or USD to an extent which appears inconsistent with inflation targeting, trade or financial integration, or the extent of business cycle synchronization. The phenomenon is particularly pronounced among the countries in the CESEE euro bloc, which may be deliberately gravitating around the euro in anticipation of eventually joining the Euro Area. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2017/083 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/083/001.2017.issue-083-en.xml IMF e-Library