Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/212528
Authors: 
Crespo Cuaresma, Jesús
Fidrmuc, Jarko
MacDonald, Ronald
Year of Publication: 
2003
Series/Report no.: 
BOFIT Discussion Papers No. 14/2003
Abstract: 
A panel data set for six Central and Eastern European countries (the Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia) is used to estimate the monetary exchange rate model with panel cointegration methods, including the Pooled Mean Group estimator, the Fully Modified Least Square estimator and the Dynamic Least Square estimator.The monetary model is able to convincingly explain the long-run dynamics of exchange rates in CEECs, particularly when this is supplemented by a Balassa-Samuelson effect.We then use our long-run monetary estimates to compute equilibrium exchange rates.Finally, we discuss the implications for the accession of selected countries to the European Economic and Monetary Union.
Subjects: 
Exchange rates
monetary model
panel unit root tests
panel cointegration
EMU
JEL: 
C33
F31
F36
Persistent Identifier of the first edition: 
ISBN: 
951-686-876-2
Document Type: 
Working Paper

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