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: BCE - Banque Centrale Européenne - Banque Centrale Européenne

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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: Credit; Current Account; EU; Exchange Rate Volatility; Growth; FDI (search for similar items in EconPapers)
Date: 2011
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00456606v1
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Citations: View citations in EconPapers (26)

Published in Economic Systems, 2011, 35 (2), pp. 261-277

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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 (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00456606

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