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Do we really know that flexible exchange rates facilitate current account adjustment? Some new empirical evidence for CEE countries

Sabine Herrmann

No 2009,22, Discussion Paper Series 1: Economic Studies from Deutsche Bundesbank

Abstract: This paper examines the relationship between the exchange rate regime and the pace of current account adjustment. The panel data set we refer to includes 11 catching-up countries from central, eastern and south-eastern Europe between 1994 and 2007. The exchange rate regime is measured by a continuous z-score measure of exchange rate volatility proposed by Gosh, Gulde and Wolf (2003). Based on a basic autoregression estimation, the results indicate that a more flexible exchange rate regime significantly enhances the rate of current account adjustment.

Keywords: Current account adjustment; exchange rate regime; Central and Eastern Europe (search for similar items in EconPapers)
JEL-codes: F31 F32 O52 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-cba, nep-eec, nep-ifn, nep-mon, nep-opm and nep-tra
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Related works:
Journal Article: Do We Really Know That Flexible Exchange Rates Facilitate Current Account Adjustment? Some New Empirical Evidence for CEE Countries (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bubdp1:200922

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