Abstract
In this paper, we consider the evolving role of exchange rate policy in countries where transition is now successfully established. In particular, we discuss the exit strategy for those transition economies that initially had relied on the exchange rate as the principal nominal anchor. First, we provide the background to the exit problem. We discuss how this problem might in principle be solved. Then we examine evidence from three leading, but contrasting, transition economies in Central Europe : Poland, the Czech Republic and Hungary. The purpose of our discussion is to consider the costs and benefits associated with each of these different methods of exit from the original exchange rate regime. JEL classifications : E52, F31, P20
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