Introduction: Exchange rates, capital flows, and commercial policies in transition economies

Exchange rate movements in all transition economies have followed a similar time path, with a sharp depreciation followed by gradual real appreciation . Such a time path is rather surprising given the differences in monetary a nd real shocks that these countries have encountered. This introduction and this symposium examine critically whether this time path of the exchange r ates can be viewed as a gradual approach to these countries' equilibrium ex change rates and whether we can deduce these equilibrium exchange rates fro m purchasing power parity exchange rates computed for these countries. (C) 1998 Academic Press.