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Equilibrium exchange rates in Central and Eastern Europe: A meta-regression analysis

Listed author(s):
  • Egert, Balazs
  • Halpern, Laszlo

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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Article provided by Elsevier in its journal Journal of Banking & Finance.

Volume (Year): 30 (2006)
Issue (Month): 5 (May)
Pages: 1359-1374

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Handle: RePEc:eee:jbfina:v:30:y:2006:i:5:p:1359-1374
Contact details of provider: Web page: http://www.elsevier.com/locate/jbf

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