Publication detail

Exchange Rate Variability, Pressures and Optimum Currency Area Criteria: Implications for the Central and Eastern European Countries

Author(s): prof. Roman Horváth Ph.D.,
Type: IES Working Papers
Year: 2005
Number: 78
Published in: IES WP 2005/78
Publishing place: Praha
Keywords: Exchange Rates, Optimum Currency Area, Euro Adoption, GMM
JEL codes: F15, F31, E58
Suggested Citation:
Grants: IES Research Framework Institutional task (2005-2011) Integration of the Czech economy into European union and its development
Abstract: This paper estimates the medium-term determinants of the bilateral exchange rate variability and exchange rate pressures for 20 developed countries in the 1990s. The results suggest that optimum currency area criteria explain the dynamics of bilateral exchange rate variability and pressures, to a large extent. Next, we predict exchange rate volatility and pressures for the Central and Eastern European Countries (CEECs). We find that CEECs encounter exchange rate pressures approximately at the level of Euro area countries before their euro adoption.
Downloadable: WP 78_Horvath




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