Exchange-rate Regimes and the Transition Process in the Western Balkans

Belke, Ansgar; Zenkic, Albina

doi:10.1007/s10272-007-0227-6

Cited by 8 publications

(4 citation statements)

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“…Sachs (1996) argues that in the first years after leaving the planned system, most transition economies experienced large structural imbalances; repressed inflation marked by extreme shortages in consumer and producer markets; large fiscal deficits, including an overhang of foreign debt; extreme currency inconvertibility, including a large black market premium on the exchange rate; low levels of domestic competitiveness; and weak trade and financial linkages with market economies. The objective of the transition process in the monetary sphere was therefore to free prices, stabilize the price level, liberalize trade, and unify markets (in particular, the foreign exchange and money markets) and thus prices (exchange and interest rates) (Belke and Zenkic 2007). However, the price liberalization that followed the likely monetary financing of the large fiscal deficits Downloaded by [La Trobe University] at 23:46 13 June 2016 sparked high inflation.…”

Section: Exchange Rate Regimes In Countries Transitioning To a Marketmentioning

confidence: 99%

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Petreski

2014

Eastern European Economics

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Section: Exchange Rate Regimes In Countries Transitioning To a Marketmentioning

confidence: 99%

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Petreski

2014

Eastern European Economics

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“…Additionally, companies have a symmetric reaction to small and large exchange rate changes; the degree of those changes is more significant than its direction. Belke and Zenkić (2007), by using the example of Southeastern Europe or the Western Balkans countries, examined the impact of the exchange rate regime on future EU and EMU integrations. They found that the monetary regimes of the Western Balkan countries' exchange rates had a positive effect on macroeconomic stability, low inflation, integrative processes and international trade.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The implementation of these currency regimes provides the Western Balkan countries with low inflation rates, stable exchange rates and market stability. It is therefore to be expected that due to the convergence of monetary and other macroeconomic policies, the EU and EMU accession process for the Western Balkan countries will be facilitated in the future (Belke & Zenkić, 2007).…”

Section: Some Stylized Factsmentioning

confidence: 99%

Asymmetric exchange rate pass‐through into import prices of Slovenia's manufacturing sector

et al. 2020

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The goal of this paper is to estimate the asymmetry of exchange rate pass‐through into aggregate and disaggregate import prices and the composition of imports of Slovenia's manufacturing sectors. We used the nonlinear autoregressive distributed lag model and the monthly data from 2007:M1 to 2017:M12. We found that, in the long run, there was an asymmetry in the complete pass‐through into aggregate import prices due to currency appreciation. Moreover, we found that for 6 out of 14 manufacturing sectors, there was a long‐run asymmetry complete and partial pass‐through due to the appreciation of the nominal effective exchange rate. Compared with depreciation, long‐run appreciation has a stronger impact on aggregate and disaggregate import prices of the manufacturing sectors. On the other hand, we found that there was a short‐run asymmetry due to depreciation in the complete and partial pass‐through for the majority of manufacturing sectors. Compared with appreciation, short‐run depreciation has a stronger impact on aggregate and disaggregate import prices of the manufacturing sectors. The degree of asymmetric pass‐through is higher for aggregate and disaggregate import prices of the manufacturing sectors compared to the degree of symmetric pass‐through. Finally, we confirmed that the degree of pass‐through is higher for homogenous products than for heterogeneous products.

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“…foreign capital flows, were analyzed by [14]. Another part of the literature was focused on analyzes related to the exchange rate regimes of SEE countries, in a broader or narrower sense ( [3], [9], [19] and [30]). On the other hand, the analysis of the determinants of exchange rates of SEE countries is very modest in the literature ( [4] and [24]).…”

Section: Introductionmentioning

confidence: 99%

What drives movements in the REER of the SEE countries? A decomposition approach

Đorđević

2023

Ekonomika preduzeća

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The real effective exchange rate (REER) is an important indicator for researchers and policymakers that contains valuable information about a country's competitiveness and economic performance. Despite the numerous literature that deals with the analysis of exchange rates, there are very few analyzes of the main drivers of REER changes, especially when it comes to transition economies. To fill this gap, we analyze the shifting patterns observed in the REER movement in the countries of Southeast Europe (SEE). By using a new approach in the literature that enables the decomposition of REER changes, we aim to explore the underlying driving forces behind REER changes, which is particularly significant in the light of current global instability. The results show large variations across eight countries from the SEE region and through time since the beginning of the 21st century. The entire observed period can be generally characterized as a period of real appreciation of the currencies of most of the analyzed countries, which indicates the deterioration of their international competitiveness in the period from January 2001 to December 2020. Analysis of the drivers of the REER changes, using two approaches, showed that short-run REER changes are dominated by the nominal effective exchange rate (NEER) changes, in most of the analyzed countries. Although the contribution of price changes (domestic and foreign) is lower than the contribution of the NEER changes, it cannot be concluded that the inflation differential contributes little, and by no means negligible, to the REER changes. This result indicates the necessary caution of the SEE countries in the context of current price instabilities.

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Exchange-rate Regimes and the Transition Process in the Western Balkans

Cited by 8 publications

References 10 publications

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Asymmetric exchange rate pass‐through into import prices of Slovenia's manufacturing sector

What drives movements in the REER of the SEE countries? A decomposition approach

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