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Exchange Rate Economics in Transition Economies

Author

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  • Josip Tica

    (Faculty of Economics and Business, University of Zagreb, Zagreb, Croatia)

Abstract

The goal of this paper is to empirically and theoretically analyze real exchange rate movements in transition countries. Since the beginning of the transition process, continuous real exchange rate appreciation has become stylized fact of all transitional economies. Most of the mainstream models of exchange rate economics have proven to be inadequate in explaining the real exchange rate movements in transition economies. Therefore, new, transition specific theories emerged as possible explanations. This paper seeks to investigate and empirically validate all transition specific theoretical frameworks which were used in explaining real exchange rate movements since the beginning of the transition.

Suggested Citation

  • Josip Tica, 2006. "Exchange Rate Economics in Transition Economies," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 9(2), pages 155-170, November.
    • Handle: RePEc:zag:zirebs:v:9:y:2006:i:2:p:155-170
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    References listed on IDEAS

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    1. > International Economics > Exchange Rate Economics

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    Cited by:

    1. Domagoj Sajter, 2015. "When Can We Call It “Extraordinary Circumstances”? Examination of Currency Exchange Rate Shocks," MIC 2015: Managing Sustainable Growth; Proceedings of the Joint International Conference, Portorož, Slovenia, 28–30 May 2015,, University of Primorska, Faculty of Management Koper.
    2. Tonci Svilokos & Meri Suman Tolic, 2014. "Does Misaligned Currency Affect Economic Growth? – Evidence from Croatia," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 16(2), pages 29-58, December.

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    More about this item

    Keywords

    real exchange rate; exchange rate based stabilization syndrome; Harrod Balassa Samuelson theorem; Feldstein-Horioka puzzle;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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