The Effect of Nominal Exchange Rate Volatility on Real Macroeconomic Performance in the CEE Countries

Olga Arratibel (), Davide Furceri, Reiner Martin and Aleksandra Zdzienicka ()
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Olga Arratibel: European Central Bank, Directorate General Economics, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany

No 934, Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon

Abstract: This paper analyzes the relation between nominal exchange rate volatility and several macroeconomic variables, namely real per output growth, excess credit, foreign direct investment (FDI) and the current account balance, in the Central and Eastern European EU Member States. Using panel estimations for the period between 1995 and 2008, we find that lower exchange rate volatility is associated with higher growth, higher stocks of FDI, higher current account deficits, and higher excess credit. The results are economically and statistically significant, and robust.

Keywords: EU; Exchange Rate Volatility; Growth; FDI; Credit; Current Account (search for similar items in EconPapers)
JEL-codes: F3 F4 F5 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2009
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Citations: View citations in EconPapers (5)

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ftp://ftp.gate.cnrs.fr/RePEc/2009/0934.pdf (application/pdf)

Related works:
Journal Article: The effect of nominal exchange rate volatility on real macroeconomic performance in the CEE countries (2011)
Working Paper: The Effect of Nominal Exchange Rate Volatility on Real Macroeconomic Performance in the CEE Countries (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:gat:wpaper:0934

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