Author(s):
1. Dragana Marković, Ekonomski fakultet Univerziteta u Kragujevac, Serbia
2. Srđan Furtula, Ekonomski fakultet Univerziteta u Kragujevac, Serbia

Abstract:
There are a number of alternative exchange rate regimes, which can be classified into euroization, the currency board and monetary union. Appropriate cost-benefit analysis of alternative exchange rate regime, is one of the most important issues in the states which are entering in the appropriate currency arrangements, in order to choose the most appropriate exchange rate regime. The biggest disadvantage of accepting any of the alternative exchange rate regimes is the loss of monetary sovereignty. National central bank or ceases to exist or loses its real power to influence the price of currencies, that determines the amount of money in circulation or changing short-term interest rates, which leads to the question of choosing alternative exchange rate regimes. Accordingly, the aim of this paper is to analyze the advantages and disadvantages of the loss of monetary sovereignty and possibilities that the central bank manages the national monetary policy.

Key words:
monetary sovereignty, monetary policy, exchange rate, EMU

Thematic field:
Entrepreneurship, Growth and Competitiveness

Date of abstract submission:
07.04.2015.

Conference:
REDETE 2014 - Researching Economic Development and Entrepreneurship in Transition Economies