Monetary policy strategies and exchange rate regimes on the southern and eastern shore of the Mediterranean – developments and prospects

At first glance, monetary policy and exchange rate strategies differ considerably across the countries on the southern and eastern shore of the Mediterranean Sea. Different historical traditions, different economic structures, and different trade orientations have resulted in a variety of choices of monetary and exchange rate regimes, ranging from very tightly pegged or managed exchange rates to floating exchange rates with monetary policy formulated on the basis of domestic targets.