Work detail

Exchange Rates in the Global Crisis: the Role of Fundamentals

Author: Mgr. Pavla Růžičková
Year: 2011 - summer
Leaders: prof. PhDr. Petr Teplý Ph.D.
Consultants:
Work type: Finance, Financial Markets and Banking
Masters
Language: English
Pages: 96
Awards and prizes:
Link:
Abstract: This thesis studies the equilibrium real effective exchange rates and the degree of
misalignment of currencies. It focuses on the real effective exchange rates of Icelandic króna
and Chinese renminbi, with special attention paid to the evolution of these exchange rates in
the period of crisis. It identifies key factors influencing the real effective exchange rates of
króna and renminbi, calculates their equilibrium level and confirms that these currencies were
misaligned in the pre-crisis period. It stresses the impact of real interest rate differential in the
case of króna and of sterilization operations applied by the People´s Bank of China in the case
of renminbi. It further examines whether the relationship between real exchange rates and
economic fundamentals was distorted in the crisis. Finally, the thesis provides an insight
Downloadable: Diploma Thesis of Růžičková

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