Divergent Paths of Inflation Stabilization: the Role of Currency Board Arrangements (Cbas) Case Comparison of Estonia and Poland

This book presents an analysis of the diverging trends in the macroeconomic stabilization processes in two transition countries, Poland and Estonia. It will argue that in the case of Estonia, a short-cut stabilization measure was overtaken, whereas Poland opted for a gradual evolutionary approach. In doing so, the author will examine and outline the role of the Currency Board Arrangement (CBA) in the stabilization process. Subsequently, a conclusion will be drawn, that first, the currency board arrangement coupled with hyperliberalization and neglect for the structural changes in part of the authorities resulted in de-stabilization of the Estonian economy, second, structural changes and institution-building measures served as a catalyst in the stabilization process in the Polish case and finally, gradual institutional change that occurred in Poland proves to be a more effective strategy in stabilizing the macroeconomic performance. This book is of interest to academics in the fields of international economic relations and political economy of post-transition process as well as to the general public.