publication . Article . 2009

The estimation of the equilibrium real exchange rate for Romania

null Bogdan; Vasile Dedu;
Open Access English
  • Published: 01 Nov 2009
  • Publisher: University of Piraeus. International Strategic Management Association
  • Country: Malta
Abstract
This paper aims to estimate the equilibrium real exchange rate for Romania, respectively the real exchange rate consistent with the macroeconomic balance, which is achieved when the economy is operating at full employment and low inflation (internal balance) and has a current account that is sustainable (external balance). This equilibrium real exchange rate is very important for an economy because deviations of the real exchange rate from its equilibrium value can affect the competitiveness of a country. An overvalued real exchange rate will determine a lack of external competitiveness and deteriorate the country’s real activity. An undervalued exchange rate wi...
Subjects
free text keywords: Foreign exchange rates -- Romania, Foreign exchange rates -- Mathematical models, Macroeconomics, Equilibrium real exchange rate, productivity differential, nominal convergence, jel:M41, jel:M42, jel:H83, General Business, Management and Accounting, General Economics, Econometrics and Finance, Economics, Exchange rate, Current account, Monetary economics, Interest rate parity, Covered interest arbitrage, International Fisher effect, Foreign exchange market, Internal balance, Inflation, media_common.quotation_subject, media_common
Related Organizations

1) Bergin, P., R. Glick and A.M. Taylor, 2006, “Productivity, tradability and the long-run price puzzle”, Journal of Monetary Economics, 53, 2041-2066.

2) De Broek, M. and T. Slok, 2001,”Interpreting real exchange rate movements in transition countries”, IMF Working Paper 01/56.

3) Brooks, C., 2002, “Introductory econometrics for finance”, Cambridge University Press.

4) Candelon, B., K. Raabe, T. van Veen and C. Kool, 2006, “Longrun real exchange rate determinants: Evidence from eight new EU member states, 1999-2003”, Journal of Comparative Economics, 35, 87-107.

5) Canzoneri, M. B., R.E. Cumby and B.Diba, 1999, “Relative labor productivity and the real exchange rate in the long run: evidence for a panel of OECD countries”, Journal of International Economics, 47, 245-266.

6) Clark, P. B. and R. MacDonald, 1998, “Exchange rate and economic fundamentals: A Methodological Comparison of BEERs and FEERs”, IMF Working Paper 98/67.

7) Coricelli, F. and B. Jazbec, 2004, “Real exchange rate dynamics in transition economies”, Structural Change and Economic Dynamics, 15, 83-100.

8) Coudert, V. and C. Couharde, 2006, “Real equilibrium exchange rate in European Union New Members and Candidate Countries”, Conference on economic policy issues in the EU, Berlin.

9) Froot, K. A. and K. Rogoff, 1994, “Perspectives on PPP and long run real exchange rates”, NBER Working Paper 4952. [OpenAIRE]

10) Lommatzsch, K. and S. Tober, 2005, “What is behind the real appreciation of the Accession countries' currencies? An investigation of the PPI-based real exchange rate”, Economic Systems, 28, 383-403. [OpenAIRE]

11) MacDonald, R., 1997, “What determines real exchange rates? The long and short of it”, IMF Working Paper 97/21.

12) Myjajima, K., 2005, “Real exchange rates in growing economies: How strong is the role on the nontradables sector?” IMF Working Paper 05/233.

13) Thalassinos E., Kiriazidis Th., 2003, “Degrees of Integration in International Portfolio Diversification: Effective Systemic Risk”, European Research Studies Journal, Vol. VI, issue 1-2. [OpenAIRE]

Powered by OpenAIRE Open Research Graph
Any information missing or wrong?Report an Issue
publication . Article . 2009

The estimation of the equilibrium real exchange rate for Romania

null Bogdan; Vasile Dedu;