Real exchange rates and competitiveness in Central and Eastern Europe: have they fundamentally changed?

Juan Cuestas, Mercedes Monfort () and Javier Ordóñez
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Mercedes Monfort: Department of Economics, Universitat Jaume I, Castellón, Spain

No 2019/12, Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain)

Abstract: In this paper we analyse the evolution of the RER and its main fundamentals for a group of Central and Eastern European countries. We focus particularly on the possibility of structural breaks in the relationship. We find clear evidence of breaks, mainly caused by the great recession. We find that a combination of both supply-side and demand-side effects are behind the variations in the real exchange rate, and overall, capital inflows have contributed to improve competitiveness in these countries.

Keywords: Real exchange rates; Central and Eastern Europe; structural breaks; European integration. (search for similar items in EconPapers)
JEL-codes: C22 F15 F32 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2019
New Economics Papers: this item is included in nep-opm, nep-ore and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:jau:wpaper:2019/12

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