Publication detail

Real Exchange Rates and Optimum Currency Areas: Evidence from the 1990s

Author(s): prof. Roman Horváth Ph.D., Zuzana Kucerova
Type: Articles in journals with impact factor
Year: 2005
Number: 0
ISSN / ISBN:
Published in: Czech Journal of Economics and Finance, pp.253-266
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Abstract: In this paper we link real exchange rates and optimum currency area criteria. We examine the hypothesis that the countries fulfilling optimum currency area criteria to a lesser extent will tend to have a bilaterally more volatile real exchange rate. We find that optimum currency criteria (such as trade integration, asymmetry of shocks or openness) explain bilateral real exchange rate variation to a large extent in our data from developed economies from the 1990s.

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