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Bilaterial equilibrium exchange rates of EU accession countries against the euro Author info | Abstract | Publisher info | Download info | Related research | Statistics Rahn, Jörg () (BOFIT)
We apply BEER and PEER approaches to calculate real equilibrium exchange rates for five EU accession countries in central and east Europe. Bilateral nominal equilibrium exchange rates against the euro are obtained through algebraic transformation of the results. Panel cointegration techniques are used to check the adequacy of the empirical model. The results reveal substantial overvaluations of the real exchange rate in several EU accession countries. Overvaluation is even higher when these exchange rates are expressed in nominal terms against the euro.
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Paper provided by Bank of Finland, Institute for Economies in Transition in its series BOFIT Discussion Papers with number
11/2003.
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Length: 33 pages
Date of creation: 04 Sep 2003Date of revision:
Handle: RePEc:hhs:bofitp:2003_011Contact details of provider: Postal: Bank of Finland, BOFIT, P.O. Box 160, FI-00101 Helsinki, Finland Phone: + 358 10 831 2268 Fax: + 358 10 831 2294 Email: Web page: http://www.bof.fi/bofit/ More information through EDIRC
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Keywords: real exchange rates ; equilibrium exchange rates ; transition economies ; panel cointeg ; Other versions of this item:
Find related papers by JEL classification: C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data F31 - International Economics - - International Finance - - - Foreign Exchange F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
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