6533b82bfe1ef96bd128e2d8

RESEARCH PRODUCT

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

Davide FurceriDavide FurceriAleksandra ZdzienickaReiner MartinOlga Arratibel

subject

Economics and Econometrics050208 financeCreditMember statesFDI05 social sciences1. No povertyEUExchange Rate VolatilityGrowthFDICreditCurrent AccountGrowthCurrent accountMonetary economicsForeign direct investment[SHS.ECO]Humanities and Social Sciences/Economics and FinanceExchange rate volatilityEastern europeanExchange rate volatilityCurrent Account8. Economic growth0502 economics and businessForward volatilityEconomics050207 economicsEU

description

Working Paper Gate 09-34; International audience; 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.

yearjournalcountryeditionlanguage
2011-01-01
https://halshs.archives-ouvertes.fr/halshs-00456606/document