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Real exchange rates in emerging economies

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  • Jan Brůha
  • Jiří Podpiera

Abstract

We analyse the role of various investment margins in explaining the real exchange rate appreciation recorded in European transition countries. We present a model that introduces a quality investment margin and show that the margin is needed for replicating the observed pace of real exchange rate appreciation.

Suggested Citation

  • Jan Brůha & Jiří Podpiera, 2010. "Real exchange rates in emerging economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(3), pages 599-628, July.
    • Handle: RePEc:bla:etrans:v:18:y:2010:i:3:p:599-628
    DOI: 10.1111/j.1468-0351.2009.00375.x
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    References listed on IDEAS

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    Cited by:

    1. Frenkel Michael & Koske Isabell, 2012. "Are the Real Exchange Rates of the New EU Member Countries in Line with Fundamentals? – Implications of the NATREX Approach," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(2), pages 129-145, April.

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