УЛОГАТА НА КОНВЕРТИБИЛНОСТА ВО ПРОЦЕСОТ НА ЕКОНОМСКА ТРАНЗИЦИЈА - Макроекономска стабилизација и либерализација -
ТНЕ ROLE OF CONVERTIBILIТY IN ТНЕ PROCESS OF ECONOMIC TRANSIТION - MACROECONOMIC STABILIZATION WITH LIBERALIZATION

Summary/Abstract: lt is now widely acknowledged that currency convertibility - along with privatization - presents the key component of а comprehensive transformation of the former communist economic system. Consequently,this paper expounds on focal points of the establishing currency convertibility in the emerging market economies (EME). The paper starts with а general discussion on the role of convertibilityin the real sector reforms and points at the concept of convertibilitysuitable for early stage of economic opening of ЕМЕ. lt also elaborate the macro- and micro-economic conditions that have to be met in order to make the introduction of convertibility sustainable. After this general section, the following parts discuss different strategies for implementing а convertible currency. The main criterion for an evaluation of these strategies is their contribution to the macroeconomic stability and real sector reconstruction. Also, the appropriate strategy heavily depends on the right choice of exchange rate regime and consequent exchange rate policy. The last section of the paper is reserved for the analysis of the convertibility issue in the macroeconomic setting provided by the existing "heterodox" stabilization program in Macedonia. ln conclusion,the paper highlights the shortcomings of the current program due to the lack of realistic exchange rate commitment. Therefore, it proposes alternative exchange rate regime as а possible path towards the convertibility of Macedonian denar.

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