Equilibrium Real Exchange Rates in Transition
AbstractThis paper tests two central assumptions regarding transforming economies: that the initial exchange rates were strongly undervalued and that the subsequent evolution of the real exchange rate was both a response to the initial undervaluation and an equilibrium real appreciation. The econometric results support both assumptions. The degree of initial overvaluation varies from country to country, ranging from very little in the case of Hungary to more than 100% in most other countries. It is estimated using a sample of 49 high-and middle-income countries, with five observations per country (1970, 1975, 1980, 1985, 1990). The subsequent process of equilibrium appreciation is estimated with pooled data for six countries (Croatia, the Czech Republic, Hungary, Poland, Slovakia and Slovenia) covering the period after inflation stabilization.
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 InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1145.
Date of creation: Apr 1995
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Find related papers by JEL classification:
- E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
- F31 - International Economics - - International Finance - - - Foreign Exchange
- P41 - Economic Systems - - Other Economic Systems - - - Planning, Coordination, and Reform
- P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Broeck, Mark De & Sløk, Torsten, 2001.
"Interpreting real exchange rate movements in transition countries,"
BOFIT Discussion Papers
7/2001, Bank of Finland, Institute for Economies in Transition.
- De Broeck, Mark & Slok, Torsten, 2006. "Interpreting real exchange rate movements in transition countries," Journal of International Economics, Elsevier, vol. 68(2), pages 368-383, March.
- International Monetary Fund, 2001. "Interpreting Real Exchange Rate Movements in Transition Countries," IMF Working Papers 01/56, International Monetary Fund.
- Yu Hsing, 2004. "Impacts of Macroeconomic Policies on Output in the Czech Republic: An Application of Romer's IS-MP-IA Model," Prague Economic Papers, University of Economics, Prague, vol. 2004(4), pages 339-345.
- Yuhsing, 2006. "Macroeconomic policies and output fluctuations in slovakia: Application of the taylor rule," International Review of Economics, Springer, vol. 53(2), pages 249-259, June.
- Lubos Komarek & Martin Melecky, 2005.
"The Behavioural Equilibrium Exchange Rate of the Czech Koruna,"
2005/05, Czech National Bank, Research Department.
- Martin Melecký & Luboš Komárek, 2007. "The Behavioral Equilibrium Exchange Rate of the Czech Koruna," Transition Studies Review, Springer, vol. 14(1), pages 105-121, May.
- Martin Melecky & Lubos Komarek, 2005. "The Behavioral Equilibrium Exchange Rate of the Czech Koruna," International Finance 0504010, EconWPA.
- Buch, Claudia M. & Heinrich, Ralph P., 1997. "Financing the transition: Risks and benefits of integrating into the international capital market," Kiel Working Papers 818, Kiel Institute for the World Economy.
- Buch, Claudia M. & Heinrich, Ralph P. & Spinanger, Dean & Brücker, Herbert & Engerer, Hella & Lodahl, Maria & Schrettl, Wolfram & Schrooten, Mechthild & Gabrisch, Hubert & Linne, Thomas & Sigmund, Pe, 1997.
"Die wirtschaftliche Lage Rußlands: Wirtschaftspolitik muß jetzt endlich Wachstumserfolge vorweisen. Elfter Bericht,"
Kiel Discussion Papers
308, Kiel Institute for the World Economy (IfW).
- Buch, Claudia M. & Heinrich, Ralph P. & Spinanger, Dean & Brücker, Herbert & Engerer, Hella & Lodahl, Maria & Schrettl, Wolfram & Schrooten, Mechthild & Gabrisch, Hubert & Linne, Thomas & Sigmund, Pe, 1997. "Die wirtschaftliche Lage Rußlands: Wirtschaftspolitik muß jetzt endlich Wachstumserfolge vorweisen. Elfter Bericht," Open Access Publications from Kiel Institute for the World Economy 987, Kiel Institute for the World Economy (IfW).
- Panagiotis Liargovas, 1999. "An Assessment of Real Exchange Rate Movements in the Transition Economies of Central and Eastern Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 11(3), pages 299-318.
- Maeso-Fernandez, Francisco & Osbat, Chiara & Schnatz, Bernd, 2004. "Towards the estimation of equilibrium exchange rates for CEE acceding countries: methodological issues and a panel cointegration perspective," Working Paper Series 0353, European Central Bank.
- Nicolas Sobczak & Céline Prigent & Hervé Joly, 1996. "Le taux de change réel d'équilibre : une introduction," Économie et Prévision, Programme National Persée, vol. 123(2), pages 1-21.
- Boone, Laurence & Maurel, Mathilde, 1998. "Economic Convergence of the CEECs with the EU," CEPR Discussion Papers 2018, C.E.P.R. Discussion Papers.
- repec:onb:oenbwp:y::i:24:b:1 is not listed on IDEAS
- Jacek Rostowski, 1999. "The Approach to EU and EMU Membership: the Implications for Macroeconomic Policy in Applicant Countries," CASE-CEU Working Papers 0026, CASE-Center for Social and Economic Research.
- Frait, Jan & Komarek, Lubos & Meleck, Martin, 2006. "The Real Exchange Rate Misalignment in the Five Central European Countries," The Warwick Economics Research Paper Series (TWERPS) 739, University of Warwick, Department of Economics.
- Vincze, János, 1997.
"A stabilizáció hatása az árak és a termelés közötti összefüggésekre
[The impact of stabilisation on the interrelations between prices and production]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 273-295.
- Frait , Jan & Komárek, Luboš, 2001. "REAL Exchange rate trends in transitional countries," The Warwick Economics Research Paper Series (TWERPS) 596, University of Warwick, Department of Economics.
- Pelin Oge Guney & Erdinc Telatar & Mubariz Hasanov, 2012. "Time Series Behaviour of the Real Interest Rates in Transition Economies," Hacettepe University Department of Economics Working Papers 20125, Hacettepe University, Department of Economics.
- French-German Economic Forum, 1999. "Reduction of Working Time," Working Papers 1999-13, CEPII research center.
- Yu Hsing, 2005. "Analysis of exchange rate fluctuations for Slovakia: application of an extended Mundell--Fleming model," Applied Financial Economics Letters, Taylor and Francis Journals, vol. 1(5), pages 289-292, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.