EconPapers    
Economics at your fingertips  
 

Sustainable Real Exchange Rates in the New Eu Member States; What Did the Great Recession Change?

Katerina Smidkova, Jan Babecký and Ales Bulir ()

No 10/198, IMF Working Papers from International Monetary Fund

Abstract: The Great Recession affected export and import patterns in our sample countries, and these changes, coupled with a more volatile external environment, have profound impact on our estimates of real exchange rate misalignments and projections of sustainable real exchange rates. We find that real misalignments in several countries with pegged exchange rates and excessive external liabilities widened relative to earlier estimates. While countries with balanced net trade positions are expected to continue to experience appreciation during 2010-2014, several currencies are likely to require real depreciation to maintain sustainable net external debt. Our estimates point to somewhat larger disequilibria than those of IMF country teams, however, any estimates of equilibrium exchange rates are subject to sizable uncertainty.

Keywords: Currencies; Bilateral trade; Economic models; Economic recession; European Economic and Monetary Union; Exchange rate regimes; Exports; Price elasticity; Real effective exchange rates; Foreign direct investment; Imports; new EU member states, sustainable exchange rates, fdi, exchange rate, real exchange rate, exchange rates, real exchange rates, (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-eec and nep-opm
Date: 2010-08-01
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=24168 (application/pdf)

Related works:
Journal Article: Sustainable Real Exchange Rates in the New EU Member States: What Did the Great Recession Change? (2012) Downloads
Working Paper: Sustainable Real Exchange Rates in the New EU Member States: What Did the Great Recession Change? (2011) Downloads
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:imf:imfwpa:10/198

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Series data maintained by Jim Beardow ().

 
Page updated 2017-12-11
Handle: RePEc:imf:imfwpa:10/198