The macroeconomic and financial developments in the CEE countries are puzzling in the sense that they are neither in line with economic theory, and nor do they reflect the empirical findings that are usually observed in other catching-up economies, including the cohesion countries in the 1990s.” As far as the recent use of policies is concerned, he pointed out four of them, namely fiscal policy, structural policy, supervisory and prudential policy and, last, but not least, monetary and the exchange rate policy.
As far as monetary and exchange rate policies are concerned, he stated the following: “The ultimate question for a country is which monetary policy and exchange rate regime is best suited to ensuring a fast and stable convergence process.