The Real Exchange Rate Misalignment in the Five Central European Countries — Single Equation Approach

Frait, Jan; Komarek, Lubos; Melecký, Martin

doi:10.1057/9780230582699_3

Cited by 8 publications

(7 citation statements)

References 20 publications

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“…Nevertheless, this result is consistent with a study conducted by [9]. The result in their study showed that the foreign direct investment has the opposite sign than was expected for Slovakia.…”

Section: Estimates Of Long-run Modelsupporting

confidence: 91%

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The study of exchange rates behavior in Malaysia by using NATREX model

Shukri

Habibullah

Yusop

et al. 2018

J. Fundam and Appl Sci.

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This paper aims to estimate equilibrium exchange rates and identify the determinants of macroeconomics fundamentals affecting exchange rates in Malaysia. By using Natural Real Exchange Rates (NATREX) model, this study adopts the Autoregressive Distributed (ARDL) model to examine the long run relationships (or cointegration) among variables and the dynamic effect within variables in the short run for the period 1970 to 2012.suggest that the terms of trade, dependency ratio of the young, and play an important role in influencing the exchange rates movement in also reveals that the misalignment of exchange rates is quite small and stable in Malaysia

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Section: Estimates Of Long-run Modelsupporting

confidence: 91%

“…Generally, the misalignment of exchange rates is the deviation of the actual exchange rate from an estimate of its equilibrium values [9]. Table 6 shows the percentage of the misalignment in exchange rate, and Fig. shows the plot of residuals and two standard error bands.…”

Section: Misalignment Of Exchange Rates In Malaysiamentioning

confidence: 99%

The study of exchange rates behavior in Malaysia by using NATREX model

Shukri

Habibullah

Yusop

et al. 2018

J. Fundam and Appl Sci.

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“…Oomes (2005) confirms this positive relationship between the GDP share of government consumption and the real exchange rate for the Slovak Republic, while Frait et al (2006) cannot detect any significant relationship.…”

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confidence: 91%

The Euro Changeover in the Slovak Republic

Hüfner

Koske

2008

OECD Economics Department Working Papers

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Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format ECO/WKP(2008)40 Unclassified English -Or. English ECO/WKP(2008)40 ABSTRACT/RÉSUMÉ The euro changeover in the Slovak Republic: implications for inflation and interest ratesIn January 2009, the Slovak Republic will adopt the euro and become the 16 th member of the euro area. This paper investigates the implications of euro adoption in the Slovak Republic for inflation and interest rates with an attempt to quantify their likely size as well as their consequences for the general public. The empirical analysiswhich makes use of the experience of the first-wave euro area countries -suggests that the cash changeover will most likely be associated with a moderate increase in consumer prices, estimated at around 0.3%. Policy measures to reduce this effect include public information campaigns, the conversion of publicly administered prices with the exact conversion rate and the reduction of administrative obstacles to increase supply. The minor purchasing power losses associated with this price increase will not be evenly distributed across the population with higher income households and families with children expected to be harder hit than others. Even though the exchange rate vis-à-vis the euro area will be irrevocably fixed, past appreciations of the koruna are still likely to pass-through to some downward pressure on consumer prices, with the cumulative effect estimated to amount to around 1.5% up to mid-2009. In the longer run, the Balassa-Samuelson effect and other factors affecting catch-up economies may raise the Slovak inflation rate above the euro area level. As capital markets have already fully priced in euro membership, no immediate effect on short-and long-term interest rates in the wholesale markets is to be expected for January 2009. In the longer run, euro adoption can be expected to foster financial integration, thereby leading to a convergence of Slovak retail interest rates towards euro area levels. This reduction in retail interest rates will benefit the general public with mortgage borrowers likely to reap the largest benefits. A potential risk of low real interest rates is the emergence of a boom-bust cycle; prudent fiscal policy and further structural reforms, including enhanced competition, would help to counter any such developments. JEL classification: F36; E31; E43

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“…The assumption behind this approach, utilized in Csajbok (2003), Frait et al (2006), Lebdaoui (2013) and others, is that over the longer term, the real exchange rate is on average in equilibrium.…”

Section: Annex III Real Exchange Rate Misalignment -Robustness Checkmentioning

confidence: 99%

The Real Exchange Rate and External Competitiveness in Egypt, Morocco and Tunisia

Brixiová

Égert

Essid

2014

Review of Middle East Economics and Finance

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Egypt, Morocco and Tunisia face challenges competing on the global markets, as shown by their relatively low and stagnant export shares. The limited export competitiveness has hampered external demand, growth and employment. Applying, for the first time to North Africa, the stock-flow approach to the real equilibrium exchange rate, this paper evaluates the countries' real exchange rate misalignments during the past three decades. While Egypt experienced periods of substantial misalignment, including in recent years, the exchange rates in Morocco and Tunisia have broadly reflected the underlying fundamentals. In all three countries structural factors are key to boosting exports, alongside of avoiding sizeable future misalignments. Intra-regional trade -both with North Africa and the rest of the continenttogether with greater orientation to fast growing emerging markets could also raise countries' external competitiveness. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SJEL Classification: F3, F41, F63, C5, O1

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The Real Exchange Rate Misalignment in the Five Central European Countries — Single Equation Approach

Cited by 8 publications

References 20 publications

The study of exchange rates behavior in Malaysia by using NATREX model

The study of exchange rates behavior in Malaysia by using NATREX model

The Euro Changeover in the Slovak Republic

The Real Exchange Rate and External Competitiveness in Egypt, Morocco and Tunisia

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