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Equilibrium Exchange Rates in Central and Eastern Europe: A Meta-Regression Analysis

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  • Balázs Égert

    ()

  • László Halpern

    ()

Abstract

This paper analyses the ever-growing literature on equilibrium exchange rates in the new EU member states of Central and Eastern Europe in a quantitative manner using meta-regression analysis. The results indicate that the real misalignments reported in the literature are systematically influenced, inter alia, by the underlying theoretical concepts (Balassa-Samuelson effect, Behavioural Equilibrium Exchange Rate, Fundamental Equilibrium Exchange Rate) and by the econometric estimation methods. The important implication of these findings is that a systematic analysis is needed in terms of both alternative economic and econometric specifications to assess equilibrium exchange rates.

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File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp769.pdf
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Bibliographic Info

Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number wp769.

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Length: pages
Date of creation: 01 May 2005
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Handle: RePEc:wdi:papers:2005-769

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Keywords: equilibrium exchange rate; Balassa-Samuelson effect; meta-analysis;

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References

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