Choice of Exchange Rate Regime in Central and Eastern European Countries: An Empirical Analysis

2005 ◽  
Author(s):  
Agnieszka Markiewicz
Keyword(s):  
Exchange Rate ◽  
Empirical Analysis ◽  
Exchange Rate Regime ◽  
European Countries ◽  
Eastern European ◽  
Eastern European Countries

An Empirical Analysis of the Output Declines in Three Eastern European Countries

1993 ◽  
Vol 40 (1) ◽  
pp. 1 ◽  
Author(s):  
Eduardo Borensztein ◽  
Dimitri G. Demekas ◽  
Jonathan D. Ostry
Keyword(s):  
Empirical Analysis ◽  
European Countries ◽  
Eastern European ◽  
Eastern European Countries

scholarly journals Still tied by golden fetters: the global response to the US recession of 1937–1938

2012 ◽  
Vol 19 (1) ◽  
pp. 21-48 ◽  
Author(s):  
Scott Urban ◽  
Tobias Straumann
Keyword(s):  
Exchange Rate ◽  
Gold Standard ◽  
Exchange Rate Regime ◽  
Central Banking ◽  
Eastern European ◽  
Standard View ◽  
Global Response ◽  
Policy Regime ◽  
The Us ◽  
Eastern European Countries

The US recession of 1937–8 is one of the deepest on record. Yet it did not produce a global depression – quite unlike 1930. According to the standard view, this reflected an unfettering of central banking after the collapse of the international gold standard circa 1931. We challenge this view. While Germany and a couple of Central and Eastern European countries were sheltered by binding exchange controls, most countries were still constrained by their golden fetters, as our new exchange rate regime classification suggests. The underlying policy regime was surprisingly similar to that of the 1929–30 downturn. What mattered was a quick reversal in US policy in 1938 and, for many countries, a more plentiful stock of international reserves.

scholarly journals Effective Exchange Rates in Central and Eastern European Countries: Cyclicality and Relationship with Macroeconomic Fundamentals

2015 ◽  
Vol 15 (2) ◽  
pp. 157-177 ◽  
Author(s):  
Daniel Stavárek ◽  
Cynthia Miglietti
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Flexible Exchange Rate ◽  
European Countries ◽  
Eastern European ◽  
Macroeconomic Fundamentals ◽  
Effective Exchange ◽  
Exchange Rate Arrangements ◽  
Eastern European Countries

Abstract This paper examines the evolution of effective exchange rates in nine Central and Eastern European countries in terms of development trends, volatility and cyclicality. Consequently, it provides direct empirical evidence on the nature of the relationship between effective exchange rates and selected macroeconomic fundamentals, addressing a key precondition of numerous exchange rate determination models and theories that attempt to explain the role of exchange rates in the economy. The results suggest that flexible exchange rate arrangements are reflected in both nominal and real effective exchange rates having higher volatility and variability. Furthermore, the results provide mixed evidence in terms of intensity, direction and cyclicality, but show a weak correlation between exchange rates and fundamentals. Sufficiently high coefficients are found only for money supply. Consequently, using fundamentals for the determination of exchange rates and using the exchange rate to explain economic development may be of limited use for the countries analyzed.

scholarly journals Exchange Rate Volatility, Currency Misalignment, and Risk of Recession in the Central and Eastern European Countries

Risks ◽  
2021 ◽  
Vol 9 (5) ◽  
pp. 82
Author(s):  
Victor Shevchuk ◽  
Roman Kopych
Keyword(s):  
Exchange Rate ◽  
Czech Republic ◽  
Economic Freedom ◽  
Exchange Rate Volatility ◽  
European Countries ◽  
Eastern European ◽  
The Czech Republic ◽  
Heritage Foundation ◽  
The Business Cycle ◽  
Eastern European Countries

This study is aimed at estimation of the exchange rate volatility and its impact on the business cycle fluctuations in four central and eastern European countries (the Czech Republic, Hungary, Poland, and Romania). Exchange rate volatility is estimated with the EGARCH(1,1) model. It is found that exchange rate volatility is affected by the components of the Index of Economic Freedom from the Heritage Foundation, besides inflation and crisis developments. The empirical results using GMM estimation technique and comprehensive robustness checks suggest that exchange rate volatility reduces the risk of recession in the Czech Republic while the opposite effect is found for Hungary and Romania, with a neutrality for Poland. These findings continue to hold after controlling for the fiscal and monetary policy indicators. There is evidence that the RER undervaluation prevents sliding into a recession on a credible basis in Poland only, with a neutral stance for other countries. Except in Romania, higher levels of economic freedom is associated with worsening of the cyclical position of output. Among other results, stabilization policies in the recession imply fiscal tightening for the Czech Republic and Romania, higher money supply for the Czech Republic and Poland, and lower central bank reference rate for Hungary.

scholarly journals Consequences of Employing Different Exchange Rate Regimes in the Situation of Financial Crisis on the Example of Central-Eastern European Countries

Equilibrium ◽  
2010 ◽  
Vol 4 (1) ◽  
pp. 37-49
Author(s):  
Dorota Zbierzchowska
Keyword(s):  
Exchange Rate ◽  
Financial Crisis ◽  
Eastern Europe ◽  
Exchange Rate Regimes ◽  
European Countries ◽  
Eastern European ◽  
Negative Consequences ◽  
Central Eastern Europe ◽  
Central Eastern ◽  
Eastern European Countries

It is characteristic for the countries of Central-Eastern Europe to employ a great variety of exchange rate regimes: by resigning from their own currency and participating in monetary unions through the systems of currency board arrangement; by employing the systems of conventional fixed pegged arrangements; and by the floating systems. In the situation of global financial crisis and liberalization of capital flow in the Central-Eastern Europe countries profits and dangers of using certain solutions in the scope of exchange rate are clearly visible. The aim of this paper is to present theoretical profits and costs of utilizing various kinds of exchange rate regimes and their consequences for the autonomy of monetary policy. The paper also compares contemporary economical situation of the Central-Eastern European countries, what allows the author to indicate those countries, where the limitations stemming from the accepted system of exchange rate had negative consequences for the condition of their economy in general.

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