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Bilaterial equilibrium exchange rates of EU accession countries against the euro

  • Jörg Rahn
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    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 EconWPA in its series Macroeconomics with number 0401010.

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    Length: 33 pages
    Date of creation: 30 Jan 2004
    Date of revision:
    Handle: RePEc:wpa:wuwpma:0401010
    Note: Type of Document - pdf; pages: 33; figures: included
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