Emerging Europe Economics

Emerging Europe Economics Focus
22 April, 2010

What can Czech policymakers do about the koruna?

Attempts by Czech policymakers to stem the recent rise in the koruna may have some effect at the
margin, but we doubt that they will do much to fundamentally alter the value of the currency. In
the end, however, with investor risk appetite likely to wane as the economic recovery disappoints,
current concerns over currency strength may well fade in the second half of this year....

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