Referierte Aufsätze Web of Science
Kirsten Lommatzsch, Silke Tober
In: Economic Systems 28 (2004), 4, S. 383-403
In the paper, we calculate real equilibrium exchange rates (EER) for EU accession countries and compare these with the actual exchange rate movements since the mid-1990s. The real equilibrium exchange rates are derived from models of macroeconomic balance and tested for econometrically. It is found that productivity increases can be regarded as one source of the observed PPI-based real appreciation of the accession countries' currencies. These productivity gains experienced in the process of economic catch-up imply an increased capacity to produce high-quality export goods and are a key driving force of exports. To a large extent real appreciation can, therefore, be viewed as an equilibrium phenomenon.
Topics: Financial markets, Europe
JEL-Classification: F41;C32;P3
Keywords: Relative productivity growth, Samuelson-Balassa effect, Real exchange rates, Transition economies
DOI:
http://dx.doi.org/10.1016/j.ecosys.2004.11.001