Resource title

Real exchange rates in small open OECD and transition economies: comparing apples with oranges?

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image for OpenScout resource :: Real exchange rates in small open OECD and transition economies: comparing apples with oranges?

Resource description

We find that productivity gains in tradables cause an appreciation of the real exchange rate via both tradable and nontradable prices in the CEE-5 and have no affect in the Baltic countries, while they lead to a depreciation of the real exchange rate of tradables in OECD economies that overcompensates the appreciation due to nontradable prices. Rising net foreign liabilities lead to a real appreciation in the Baltic countries instead of the expected depreciation found in OECD and CEE-5 countries. These differences are due to the different impact of the fundamentals on the real exchange rate depending on the time horizon studied.

Resource author

Balázs Égert, Kirsten Lommatzsch, Amina Lahrèche-Révil

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25973

Resource license

Adapt according to the presented license agreement and reference the original author.