Naslov
Do Fundamentals Explain the Behaviour of the Real Effective Exchange Rate in Croatia?

Autori
Belullo, Alen ; Broz, Tanja

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Conference Proceedings of the 28th International Conference on Organisational Science Development: New technologies, new challenges / Rajkovič, Vladislav ; Ferjan, Marko ; Kern, Tomaž ; Paape, Bjorn - Kranj : Moderna organizacija, 2009, 109-130

ISBN
978-961-232-230-4

Skup
28th International Conference on Organisational Science Development: New technologies, new challenges

Mjesto i datum
Portorož, Slovenija, 25.03.2009. - 27.03.2009

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
real effective exchange rate; fundamentals; misalignment; behavioural equilibrium exchange rate; Croatian kuna

Sažetak
Exchange rate is one of the most important variables in Croatian economy, due to the long history of inflation and depreciation of domestic currency. For that reason it is necessary to understand what explains the behaviour of the exchange rate and is the exchange rate in the equilibrium or it is over or undervalued. Persistent exchange rate misalignment can generate severe macroeconomic disequilibrium which usually leads to costly external imbalances corrections. In this paper we are investigating using behavioural equilibrium exchange rate approach do fundamentals explain the behaviour of Croatian kuna and whether real effective exchange rate is misaligned. Results indicate that relative effective terms of trade, relative effective price ratio of tradables to nontradables and real interest rate differential are fundamentals that explain the behaviour of the real effective exchange rate in Croatia and that real effective exchange rate was very close to all analysed period to equilibrium exchange rate dictated by fundamentals in all analysed periods.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA