EU Enlargement and Monetary Regimes from theInsurance Model Perspectives

Some ten years ago, Michael Dooley (Dooley, 1997; Dooley, 2000) put forwardan insurance model of currency crises, which after some modifications gives a goodtheoretical basis for explanation of the overall dynamics of the post communist transformationand diversity across countries and periods. The article analyses, within the framework of theinsurance model, the role of monetary regimes (currency anchor) and EU enlargement(political and geostrategic anchor) and their relationships. The insurance game model not onlycontains an explanatory power, but it also has the potential to suggest a range of measures thatcould be useful in overcoming the "bad" dynamics, which we are witnessing today not only inthe new member-states, but also EU-wide....