Author: Publisher:
ISBN: 9789516869288
Category :
Languages : en
Pages : 0
Book Description
Assessing Equilibrium Exchange Rates in CEE Acceding Countries
Author: Assessing Equilibrium Exchange Rates in CEE Acceding Countries
Author: Assessing equilibrium exchange rates in CEE acceeding countries
Author: Égert BalázsPublisher:
ISBN:
Category : Foreign exchange rates
Languages : fi
Pages : 78
Book Description
Equilibrium Exchange Rates
Author: Peter IsardPublisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 54
Book Description
The paper describes six different methodologies that have been used to assess the equilibrium values of exchange rates and discusses their limitations. It applies several of the approaches to data for the United States as of 2006, illustrates that different approaches sometimes provide substantially different assessments, and asks which methodologies deserve the most weight in such situations. It argues that while it is generally desirable to consider the implications of several different approaches, since different approaches provide different types of perspectives, two of the methodologies seem particularly relevant for identifying threats to macroeconomic stability and growth.
Equilibrium Exchange Rates of Central and Eastern European Countries on the Road to the European Monetary Union
Author: Jörg RahnPublisher: Peter Lang Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 204
Book Description
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.
The Stock-flow Approach to the Real Exchange Rate of CEE Transition Economies
Author: How Robust are Estimates of Equilibrium Real Exchange Rates
Author: Mr.Steven Vincent DunawayPublisher: INTERNATIONAL MONETARY FUND
ISBN: 9781451864809
Category : Business & Economics
Languages : en
Pages : 0
Book Description
Increased attention is being paid to assessments of the actual values of countries' real exchange rates relative to their "equilibrium" values as suggested by "fundamental" determining factors. This paper assesses the robustness of alternative approaches and models commonly used to derive equilibrium real exchange rate estimates. Using China's currency to illustrate this analysis, the variance in estimates raises serious questions regarding how robust the results are. The basic conclusion from the tests used here is that, at least for China, small changes in model specifications, explanatory variable definitions, and time periods used in estimation can lead to very substantial differences in equilibrium real exchange rate estimates. Thus, such estimates should be treated with great caution.
Exchange Rates and Macroeconomic Dynamics
Author: P. KaradeloglouPublisher: Springer
ISBN: 0230582699
Category : Business & Economics
Languages : en
Pages : 255
Book Description
This book looks at the PPP persistence puzzle, and econometric aspects of exchange rate dynamics and their implications. It also explores the importance of exchange rate dynamics in the pass-through effects (PTE) and the econometric aspects of the exchange rates dynamics linked to structural shocks on different economies.
Bilateral Equilibrium Exchange Rates of EU Accession Countries Against the Euro
Author: Estimating the Equilibrium Exchange Rate of the Central and Eastern European Acceding Countries
Author: Balázs ÉgertPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
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.