Are Devaluations Expansionary or Contractionary in Transition Economies?
Salah Nusair
Applied Economics Quarterly (formerly: Konjunkturpolitik), 2014, vol. 60, issue 3, 215-251
Abstract:
This paper examines the effects of changes in the real effective exchange rate on output for sixteen transition economies using cointegration tests with quarterly data. In addition, impulse response and variance decomposition analyses are also used to identify the significance of the real effective exchange rate, money supply, fiscal policy, and foreign income on output. The results suggest that devaluation is expansionary in the long-run in Estonia, Georgia, Russia, Ukraine, Poland, Romania and Slovakia; contractionary in Latvia, Lithuania, Armenia, Moldova, Croatia, the Czech Republic, Hungary and Slovenia; and has no long-run effect on output in Bulgaria. In addition, monetary and fiscal policies and foreign income seem to be important determinants of the long-run level of output in most of the cases.
Keywords: transition economies; devaluation (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://dx.doi.org/10.3790/aeq.60.3.215 (application/pdf)
Access to full text is restricted to subscribers (2008 onwards); Pay-per-view access from https://elibrary.duncker-humblot.com/journals/aeq (2008 onwards) and http://www.genios.de (2008 onwards)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:dah:aeqaeq:v60_y2014_i3_q3_p215-251
Ordering information: This journal article can be ordered from
https://www.duncker-humblot.de/zeitschriften/aeq
subscription@duncker-humblot.de
Access Statistics for this article
Applied Economics Quarterly (formerly: Konjunkturpolitik) is currently edited by Cinzia Alcidi, Christian Dreger and Daniel Gros
More articles in Applied Economics Quarterly (formerly: Konjunkturpolitik) from Duncker & Humblot GmbH, Berlin
Bibliographic data for series maintained by E-Publishing-Team (elibrary@duncker-humblot.de).