Download or read book Equilibrium Real Exchange Rates in Central Europe s Transition Economies written by Balázs Égert and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Equilibrium Real Exchange Rates in Central Europe s Transition Economics Knocking on Heaven s Door written by Balazs Egert and published by . This book was released on 2002 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Equilibrium Exchange Rates in Transition Economies written by Lionel Halpern and published by International Monetary Fund. This book was released on 1996-11-01 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: A stylized fact of the transition process is an early profound exchange rate depreciation followed by continuing real appreciation. Absent historical reference points, it is difficult to judge whether the real appreciation is threatening competitiveness. This paper interprets the stylized facts and offers estimates of the equilibrium real exchange rate based on an international comparison of dollar wages and on a study of the dynamics of real exchange rates in several transition economies. The results suggest that the process of real appreciation is a combination of a return to equilibrium following the early overshooting and equilibrium appreciation.
Download or read book Estimating the Equilibrium Exchange Rate of the Central and Eastern European Acceding Countries written by Balázs Égert and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The ambition of this study is to estimate the equilibrium real and nominal exchange rates for 5 selected Central and Eastern European transition economies, namely for the Czech Republic, Hungary, Poland, Slovakia and Slovenia. For this purpose, the fundamental equilibrium exchange rate (FEER) methodology developed by Williamson (1994) is combined with the behavioural equilibrium exchange rate (BEER) approach advocated by Clark and McDonald (1998). Our investigation is based on the notion of internal and external balances defined respectively in terms of the relative price of non-tradable goods and the long-run sustainability of the current account position, and is carried out in the framework of a VAR-based 3-equation cointegration system. Long-term equilibrium values for relative prices are determined using relative productivity and private consumption, whereas the current account is regressed on terms of trade and the openness ratio. To derive the equilibrium real exchange rate and to compute subsequently the extent of misalignment, the long-run values for external and internal balances are substituted in the simultaneously estimated cointegration relationships connecting the real effective exchange rate with relative prices and the current account. The empirical findings show that the gap between the observed and estimated equilibrium real exchange rates differs across the 5 transition countries: the Czech Republic, Poland and Slovakia may have experienced an excessive appreciation of their real effective exchange rate whilst Hungary and Slovenia show little sign of overvaluation during the period under study. These results suggest the role flexible exchange rate regimes may play in exchange rate misalignments. Assuming that the obtained misalignment can be eliminated with adjustments in the nominal exchange rate, the estimated misalignment is used to derive the equilibrium nominal exchange rate against the euro. Finally, we construct a hypothetical ERM-II so as to investigate the nominal exchange rate stability around the estimated equilibrium nominal exchange rate.
Download or read book Equilibrium Exchange Rates of Central and Eastern European Countries on the Road to the European Monetary Union written by Jörg Rahn and published by Peter Lang Publishing. This book was released on 2005 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt: The upcoming enlargement of the European Monetary Union involves the selection of appropriate reference rates at which the exchange rates of the accession countries will be fixed against the euro in order to avoid economic distortions as consequences of serious exchange rate misalignments. Determination of an exchange rate that is neither undervalued nor overvalued raises the issue of equilibrium exchange rates. Based on time series as well as panel estimation techniques three different concepts - BEER, PEER and PPP - are applied in this study to calculate equilibrium exchange rate levels for ten Central and Eastern European countries. The results indicate significant real misalignments in a number of accession countries.
Download or read book Real Exchange Rate Appreciation in Central and Eastern European Countries written by José García Solanes and published by Fundacion BBVA. This book was released on 2008 with total page 71 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary Policy Regimes and Real Exchange Rates in Central Europe s Transition Economies written by Lucjan T. Orlowski and published by . This book was released on 2000 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines how various approaches to monetary policy in Poland, Hungary and the Czech Republic during the period 1995-1999 influence the trend and the stability of real exchange rates. It argues that, in contrast to the Polish and the Czech systems, the Hungarian commitment to exchange rate stability has been successful in lowering the scope of real currency appreciation and in diminishing volatility of real exchange rates, although at the cost of higher inflation. The paper proves empirically that the Hungarian monetary policy allows for an active use of the exchange rate channel of monetary transmission, while the alternative Polish and Czech monetary regimes based on more flexible exchange rates disable this channel. The empirical tests cast doubts about effectiveness of crawling devaluations. They further prove that changes in real exchange rates are influenced mainly by fluctuations in nominal rates and by their own stochastic time trend.
Download or read book Balance of Payments Exchange Rates and Competitiveness in Transition Economies written by Mario I. Blejer and published by Springer Science & Business Media. This book was released on 2007-08-23 with total page 501 pages. Available in PDF, EPUB and Kindle. Book excerpt: Integrating transition economies into the global commercial and trade market system is a prolonged and risky process. This book is a collection of studies dealing with the different issues related to the liberalization of external relations in economies moving from a socialist to a market-based system The focus is on external sector developments, and the topics deal with balance of payments conditions, exchange rate policies and regimes, international competitiveness, international capital flows, trade, and other matters related to the integration of transition economies into the world economy. An understanding of the principles involved and of the experiences of both transition and advanced economies during this process is crucial to ensure its ultimate success. Written by internationally recognized scholars, the chapters cover these issues in a systematic manner. The first section treats current account developments, capital flows, and exchange rate policies in transition countries, the second section deals with specific issues related to international trade, and the final section consists of six specific country experiences. In this final section, a chapter dealing with the Russian Federation discusses the collapse of the ruble in August 1998.
Download or read book Equilibrium Exchange Rates in Transition Economies written by Balázs Égert and published by . This book was released on 2004 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary and Exchange Rate Policy of Transition Economies of Central and Eastern Europe after the Launch of EMU written by Mr.Paul R. Masson and published by International Monetary Fund. This book was released on 1999-07-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: The more advanced Central and Eastern European Countries (CEECs) face an evolving set of considerations in choosing their exchange rate policies. On the one hand, capital mobility is increasing, and this imposes additional constraints on fixed exchange rate regimes, while trend real appreciation makes the combination of low inflation and exchange rate stability problematic. On the other hand, the objectives of EU and eventual EMU membership make attractive a peg to the euro at some stage in the transition. The paper discusses these conflicting considerations, and considers the feasibility of an alternative monetary framework, inflation targeting.
Download or read book Interpreting Real Exchange Rate Movements in Transition Countries written by Mark de Broeck and published by . This book was released on 2001 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Competitiveness in Transition Economies written by Kornélia Krajnyák and published by International Monetary Fund. This book was released on 1997-11 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the last few years, the currencies of the transition countries of Central and Eastern Europe and the former Soviet Union have undergone large real appreciations (Figures 1 and 2)1. According to a widespread concensus, the process of appreciation set in following an initially strongly undervalued position of these currencies. Accordingly, it was not perceived to be threatening to the competitiveness positions of these countries. In view of the magnitude of real appreciations witnessedup to fifteen-fold in some CIS economies, including Russia, since early 1992this can no longer be taken for granted. The Czech currency crisis in May 1997, which led to a devaluation of the koruna by 8.5 percent following a large widening of the current account deficit in 1996 (Table 1), has focused new attention on the question whether the scope for real appreciation has by now been exhausted in some or most transition economies. If the answer is yes, this would clearly have implications for the design of exchange rate policy, which in many countries so far has been guided primarily by the objective of reducing inflation, rather than maintaining competitiveness.
Download or read book Equilibrium Exchange Rates in the Transition written by Balázs Égert and published by . This book was released on 2007 with total page 63 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper sets out to estimate equilibrium real exchange rates for the Czech Republic, Hungary, Poland, Slovakia and Slovenia. A theoretical model is developed that provides an explanation for the appreciation of the real exchange rate based on tradable prices in the acceding countries. Our model can be considered as a competing but also completing framework to the traditional Balassa-Samuelson model. With this as a background, alternative cointegration methods are applied to time series (Engle-Granger, DOLS, ARDL and Johansen) and to three small-size panels (pooled and fixed effect OLS, DOLS, PMGE and MGE), which leaves us with around 5,000 estimated regressions. This enables us to examine the uncertainty surrounding estimates of equilibrium real exchange rates and the size of the underlying real misalignments.
Download or read book Equilibrium Exchange Rates in Central and Eastern Europe written by Balázs Égert and published by . This book was released on 2005 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyses the ever-growing literature on equilibrium exchange rates in the new EU member states of Central and Eastern Europe in a quantitative manner using meta-regression analysis. The results indicate that the real misalignments reported in the literature are systematically influenced, inter alia, by the underlying theoretical concepts (Balassa-Samuelson effect, Behavioural Equilibrium Exchange Rate, Fundamental Equilibrium Exchange Rate) and by the econometric estimation methods. The important implication of these findings is that a systematic analysis is needed in terms of both alternative economic and econometric specifications to assess equilibrium exchange rates. Published in: Journal of Banking & Finance 30 (2006), pp. 1359-1374. ISSN: 0378-4266.
Download or read book Real Exchange Rates in Central and Eastern Europe written by Gilles Dufrénot and published by . This book was released on 2005 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this article we study the fundamental macroeconomic determinants of both the inflation-based (i.e., CPI) and the tradable price-based (i.e., PPI) real effective exchange rate in five acceding countries from Central and Eastern Europe, that is, the Czech Republic, Hungary, Poland, Slovakia, and Slovenia. The article is based on the combination of two approaches widely used for transition economies, namely, the behavioral equilibrium exchange rate and the structural vector autoregression. Indeed, a cointegration approach is adopted and an estimated vector error correction model attempts to connect in a structural way the real effective exchange rate to labor productivity, the relative price of nontradable goods, public deficit, and the current account position. Impulse-response functions are subsequently employed to investigate how shocks in the underlying fundamentals impact on the effective real exchange rates.
Download or read book Global Value Chains and Equilibrium Exchange Rate written by Kamila Kuziemska-Pawlak and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Equilibrium Real Exchange Rates in Transition written by László Halpern and published by . This book was released on 1995 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:
