The Exchange Rate and Two Price Inflations in Poland in the Period 1999-2009. Do Globalization and Balassa-Samuelson Effect Matter?
AbstractThe abrupt depreciation of the zloty during the subprime crisis and fast-rising prices are serious problems, because Poland, having to fulfil five Maastricht criteria, makes the dependence of her domestic inflation on price increases in the EU countries the central point of the discussion about the optimal monetary and fiscal policy rules for the next few years. The primary objective of the paper is to test out some hypotheses about the main sources of the volatility of the Polish zloty / euro exchange rate and inflation in Poland. Because several competing theoretical models describing inflationary processes are widely used, special attention is paid to their empirical verification. The working-hypotheses allowing for the country-specific features of the consumer and producer price inflation are formulated and verified in the paper.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by CEJEME in its journal Central European Journal of Economic Modelling and Econometrics.
Volume (Year): 2 (2010)
Issue (Month): 4 (September)
Contact details of provider:
Web page: http://cejeme.org/
cointegration; exchange rate; Balassa-Samuelson effect; price-wage loop;
Find related papers by JEL classification:
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- F31 - International Economics - - International Finance - - - Foreign Exchange
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter N Smith & Michael R Wickens, .
"Asset Pricing with Observable Stochastic Discount Factors,"
02/03, Department of Economics, University of York.
- Smith, Peter & Wickens, Michael, 2002. " Asset Pricing with Observable Stochastic Discount Factors," Journal of Economic Surveys, Wiley Blackwell, vol. 16(3), pages 397-446, July.
- Kocenda, Evzen & Poghosyan, Tigran, 2009.
"Macroeconomic sources of foreign exchange risk in new EU members,"
Journal of Banking & Finance,
Elsevier, vol. 33(11), pages 2164-2173, November.
- Tigran Poghosyan & Evzen Kocenda, 2007. "Macroeconomic Sources of Foreign Exchange Risk in New EU Members," William Davidson Institute Working Papers Series wp898, William Davidson Institute at the University of Michigan.
- Wallis, Kenneth F., 2004.
"Comparing empirical models of the euro economy,"
Elsevier, vol. 21(5), pages 735-758, September.
- Lawrence H. Officer, 1976. "The Purchasing-Power-Parity Theory of Exchange Rates: A Review Article (ThÃ©orie de la paritÃ© des pouvoirs d'achat des taux de change: une Ã©tude) (La teorÃa de los tipos de cambio basados e," IMF Staff Papers, Palgrave Macmillan, vol. 23(1), pages 1-60, March.
- KornÃ©lia KrajnyÃ¡k & Jeromin Zettelmeyer, 1998. "Competitiveness in Transition Economies: What Scope for Real Appreciation?," IMF Staff Papers, Palgrave Macmillan, vol. 45(2), pages 309-362, June.
- Jan J J Groen & Ravi Balakrishnan, 2005.
"Asset price based estimates of sterling exchange rate risk premia,"
Bank of England working papers
250, Bank of England.
- Groen, Jan J.J. & Balakrishnan, Ravi, 2006. "Asset price based estimates of sterling exchange rate risk premia," Journal of International Money and Finance, Elsevier, vol. 25(1), pages 71-92, February.
- Juselius, Katarina, 1995. "Do purchasing power parity and uncovered interest rate parity hold in the long run? An example of likelihood inference in a multivariate time-series model," Journal of Econometrics, Elsevier, vol. 69(1), pages 211-240, September.
- Roman Frydman & Michael D. Goldberg, 2007.
"Recognizing the Limits of Economists' Knowledge, from Imperfect Knowledge Economics: Exchange Rates and Risk
[Imperfect Knowledge Economics: Exchange Rates and Risk]," Introductory Chapters, Princeton University Press.
- Balázs �gert & László Halpern & Ronald MacDonald, 2006. "Equilibrium Exchange Rates in Transition Economies: Taking Stock of the Issues ," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 257-324, 04.
- Balázs Égert, & László Halpern & Ronald MacDonald, 2005.
"Equilibrium Exchange Rates in Transition Economies: Taking Stock of the Issues,"
William Davidson Institute Working Papers Series
wp793, William Davidson Institute at the University of Michigan.
- Balázs Égert & László Halpern & Ronald MacDonald, 2005. "Equilibrium Exchange Rates in T ransition Economies: T aking Stock of the Issues," Working Papers 106, Oesterreichische Nationalbank (Austrian Central Bank).
- Égert, Balázs & Halpern, László & MacDonald, Ronald, 2004. "Equilibrium Exchange Rates in Transition Economies: Taking Stock of the Issues," CEPR Discussion Papers 4809, C.E.P.R. Discussion Papers.
- Roberts, John M, 1995. "New Keynesian Economics and the Phillips Curve," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(4), pages 975-84, November.
- Frydman Roman & Goldberg Michael D., 2008. "Macroeconomic Theory for a World of Imperfect Knowledge," Capitalism and Society, De Gruyter, vol. 3(3), pages 1-78, December.
- Lionel Halpern & Charles Wyplosz, 1996.
"Equilibrium Exchange Rates in Transition Economies,"
IMF Working Papers
96/125, International Monetary Fund.
- LÃ¡szlÃ³ Halpern & Charles Wyplosz, 1997. "Equilibrium Exchange Rates in Transition Economies," IMF Staff Papers, Palgrave Macmillan, vol. 44(4), pages 430-461, December.
- Maritta Paloviita, 2008.
"Comparing alternative Phillips curve specifications: European results with survey-based expectations,"
Taylor & Francis Journals, vol. 40(17), pages 2259-2270.
- Paloviita , Maritta, 2005. "Comparing alternative Phillips curve specifications: European results with survey-based expectations," Research Discussion Papers 22/2005, Bank of Finland.
- Juselius, Katarina, 2006. "The Cointegrated VAR Model: Methodology and Applications," OUP Catalogue, Oxford University Press, number 9780199285679, September.
- Keblowski, Piotr & Welfe, Aleksander, 2010. "Estimation of the equilibrium exchange rate: The CHEER approach," Journal of International Money and Finance, Elsevier, vol. 29(7), pages 1385-1397, November.
- Piotr Kębłowski, 2011. "The Behaviour of Exchange Rates in the Central European Countries and Credit Default Risk Premiums," Central European Journal of Economic Modelling and Econometrics, CEJEME, vol. 3(4), pages 221-236, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Krzysztof Osiewalski).
If references are entirely missing, you can add them using this form.