Adjustment to the Asymmetric Shocks and Currency Unions: the Case of Belarus and Russia

Valery Chernookiy ()

EERC Working Paper Series from EERC Research Network, Russia and CIS

Abstract: The paper analyzes mechanism of adjustment to the asymmetric shocks in terms of trade in possible currency union of Belarus and Russia. It is emphasized the role of real exchange rate in this process. An empirical analysis based on panel data confirms the asymmetric effect of fuel price changes on the equilibrium real exchange rate in two countries. At the same time, according to our estimates, real exchange rate changes affect significantly real output and its structure in Belarus. On the base of analysis provided, conclusion is made about necessity to create a fiscal stabilization mechanism which would allow to smooth negative effect of asymmetric shocks on Belarusian economy under currency union.

Keywords: Belarus; Russia; currency union; asymmetric shocks; terms of trade; real exchange rate. (search for similar items in EconPapers)
JEL-codes: C23 E42 F31 F33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cis, nep-ifn, nep-mac, nep-mon and nep-tra
Date: 2005-05-04
View list of references View citations in EconPapers

Downloads: (external link)
http://www.eerc.ru/details/download.aspx?file_id=5289 (application/pdf)

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:eer:wpalle:05-07e

Ordering information: This working paper can be ordered from
EERC Research Network, Russia and CIS, 47, Nakhimovsky pr-t, suite 919, Moscow, 117418 Russia
http://www.eerc.ru/p ... riptions/default.htm

Access Statistics for this paper

More papers in EERC Working Paper Series from EERC Research Network, Russia and CIS
Address: EERC Research Network, Russia and CIS, 47, Nakhimovsky pr-t, suite 919, Moscow, 117418 Russia
Series data maintained by Dmitry Basovsky (). This e-mail address is bad, please contact .