IDEAS home Printed from https://ideas.repec.org/a/vls/finstu/v14y2010i3p119-132.html
   My bibliography  Save this article

Aspects Of The Exchange Rate Trends In The New Member States Of The European Union

Author

Listed:
  • Iordache, Floarea IORDACHE

    (Centre for Financial and Monetary Research “Victor Slăvescu”, Romanian Academy)

  • Milea, Camelia

    (Centre for Financial and Monetary Research “Victor Slăvescu”, Romanian Academy)

  • Glod, Alina Georgeta

    (Centre for Financial and Monetary Research “Victor Slăvescu”, Romanian Academy)

Abstract

While most macroeconomic indicators, analyzed on a longer period of time, may indicate the "health" of an economy, the exchange rate evolution reveals, generally, the increase or decrease, non seldom brutal, of the "temperature" of an economy. Thus, the analysis of the exchange rates evolution of the New Member States (NMS) of the European Union (EU) may constitute the basis for further research concerning these regional economies in the context of the changeover to Euro. Of course, the Euro currency is not a solution against all risks (it remains the risk of overheating and the risk of the loss of competitiveness), but amid the beginning and manifestation of global financial and economic crisis, the Euro currency proved to be a good enough protection for the euro area countries, increasing the attractiveness of this monetary area for the NMS. However, NMS can restrict macroeconomic slippages caused by the crisis by implementing balanced fiscal and wage policies, and the exchange rate or other monetary instruments may be temporary outlets for stress accumulation in these economies.

Suggested Citation

  • Iordache, Floarea IORDACHE & Milea, Camelia & Glod, Alina Georgeta, 2010. "Aspects Of The Exchange Rate Trends In The New Member States Of The European Union," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 14(3), pages 119-132.
  • Handle: RePEc:vls:finstu:v:14:y:2010:i:3:p:119-132
    as

    Download full text from publisher

    File URL: ftp://www.ipe.ro/RePEc/vls/vls_pdf/vol14i3p119-132.pdf
    Download Restriction: no

    More about this item

    Keywords

    economic and financial crisis; exchange rate; new EU member states of EU;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • G01 - Financial Economics - - General - - - Financial Crises

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vls:finstu:v:14:y:2010:i:3:p:119-132. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Daniel Mateescu). General contact details of provider: http://edirc.repec.org/data/cfiarro.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.