REAL EXCHANGE RATE OF THE CZECH KORUNA AND THE PRICES OF NON-TRADABLE GOODS AND SERVICES

Martin Mandel and Vladimír Tomšík

Acta Oeconomica Pragensia, 2008, vol. 2008, issue 3, pages 3-12

Abstract: The paper presents both theoretical and an empirical analysis of factors influencing the prices of non-tradable goods and services in the Czech economy. The analysis discusses the development of the real exchange rate of the Czech koruna and quantifies the size of the real exchange rate appreciation of the Czech currency in the period 1993-2007 as a result of the domestic price development in the tradable and non-tradable sectors. The paper mathematically derives a relationship between the prices of non-tradable goods and services and the real exchange rate based on a traditional aggregate base. It also defines the basic determinants of the prices of non-tradable goods and services while emphasizing the basic distinctions between these price determinants for non-tradable and tradable goods and services. The econometric part of the paper is based on VAR models, cointegration analysis, and vector error correction models. The empirical verification is carried out with the Czech economic data covering the period 1996-2007.

Keywords: Balassa-Samuelson effect; real exchange rate; inflation (search for similar items in EconPapers)
JEL-codes: C33 F31 F41 (search for similar items in EconPapers)
Date: 2008

Downloads: (external link)
http://www.vse.cz/polek/download.php?jnl=aop&pdf=89.pdf (application/pdf)
http://www.vse.cz/aop/abstrakt.php3?IDcl=89 (text/html)
free of charge, full text delayed 1 year

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: http://EconPapers.repec.org/RePEc:prg:jnlaop:v:2008:y:2008:i:3:id:89:p:3-12

Ordering information: This journal article can be ordered from
Redakce Acta Oeconomica Pragensia, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3
http://www.vse.cz/aop/

Access Statistics for this article

Acta Oeconomica Pragensia is edited by Markéta Arltová

More articles in Acta Oeconomica Pragensia from University of Economics, Prague
Contact information at EDIRC.
Series data maintained by Vaclav Subrta ().