The Effect of Nominal Exchange Rate Volatility on Real Macroeconomic Performance in the CEE CountriesReport as inadecuate




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1 BCE - Banque Centrale Européenne 2 OCDE - Organisation de coopération et de développement économiques 3 GATE Lyon Saint-Étienne - Groupe d-analyse et de théorie économique

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 : EU Exchange Rate Volatility Growth FDI Credit Current Account





Author: Olga Arratibel - Davide Furceri - Reiner Martin - Aleksandra Zdzienicka-Durand -

Source: https://hal.archives-ouvertes.fr/



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