Publication detail

Exchange rate variability, pressures and optimum currency areas: Implications for Central and Eastern European Countries

Author(s): prof. Roman Horváth Ph.D.,
Type: Others
Year: 2005
Number: 0
ISSN / ISBN:
Published in: Czech National Bank Working Paper Series, No. 8/2005 (also in IES FSV UK WP No. 78)
Publishing place:
Keywords:
JEL codes:
Suggested Citation:
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.

Partners

Deloitte

Sponsors

CRIF
McKinsey
Patria Finance