Real Output and Prices Adjustments Under Different Exchange Rate Regimes
In: William Davidson Institute Working Paper No. 1064
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In: William Davidson Institute Working Paper No. 1064
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In: William Davidson Institute Working Paper No. 1065
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In: William Davidson Institute Working Paper No. 1058
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In: Panoeconomicus: naučno-stručni časopis Saveza Ekonomista Vojvodine ; scientific-professional journal of Economists' Association of Vojvodina, Volume 56, Issue 3, p. 359-377
ISSN: 2217-2386
The stable macroeconomic environment, as one of the primary objectives of the Visegrad countries in the 1990s, was partially supported by the exchange rate policy. Fixed exchange rate systems within gradually widen bands (Czech Republic, Slovak Republic) and crawling peg system (Hungary, Poland) were replaced by the managed floating in the Czech Republic (May 1997), Poland (April 2000), Slovak Republic (October 1998) and fixed exchange rate to euro in Hungary (January 2000) with broad band (October 2001). Higher macroeconomic and banking sector stability allowed countries from the Visegrad group to implement the monetary policy strategy based on the interest rate transmission mechanism. Continuous harmonization of the monetary policy framework (with the monetary policy of the ECB) and the increasing sensitivity of the economy agents to the interest rates changes allowed the central banks from the Visegrad countries to implement monetary policy strategy based on the key interest rates determination. In the paper we analyze the impact of the central banks' monetary policy in the Visegrad countries on the selected macroeconomic variables in the period 1999-2008 implementing SVAR (structural vector autoregression) approach. We expect that higher sensitivity of domestic variables to interest rates shocks can be interpreted as a convergence of monetary policies in candidate countries towards the ECB's monetary policy.
In: Panoeconomicus: naučno-stručni časopis Saveza Ekonomista Vojvodine ; scientific-professional journal of Economists' Association of Vojvodina, Volume 55, Issue 2, p. 219-231
ISSN: 2217-2386
The main objective of the proceeding is to perform a logical decomposition of the structure of external capital inflows and outflows in the Slovak republic in order to analyze the main trends in the external financial integration and its development through the period of 1994-2006. In order to fulfill our objective we observe the changes in the structure of external financial assets and liabilities in order to provide the explanation of main trends in the external capital portfolio of the Slovak republic. Finally, we explore the implications of the accumulated stock of external capital for future trade and current account balances. .
In: Panoeconomicus: naučno-stručni časopis Saveza Ekonomista Vojvodine ; scientific-professional journal of Economists' Association of Vojvodina, Volume 53, Issue 4, p. 439-456
ISSN: 2217-2386
The positive and the negative macroeconomic aspects of the financial liberalization for the developing and emerging economies are well described in the present literature. But it is not easy to clearly summarize the final effects of the financial integration on the certain country. For instance the argument about the growth benefits of the capital account liberalization is likely to be inadequate considering the financial crises in the emerging markets at the end of the last century. On the other hand, many authors (especially in the financial literature) report that the equity market liberalizations help to significantly boost the economic growth. There are also some examples on the microeconomic level (firm level or industry level) when the international financial integration brings certain benefits to the integrated enterprises and the capital flows restriction leads to the distortionary effects. In the paper we analyze the macroeconomic effects of the capital flows liberalization.
The real output deterioration, high fi scal defi cits and increased sovereign debt burden represents key phenomena that affected the maneuverability of fi scal authorities in the early crisis years. Controversy between fi scal sustainability and fi scally driven economic recovery fueled a large number of academic and policy discussions about the appropriate response of governments to the crisis challenges. Empirical literature provides mixed evidence about the effects of fi scal policy adjustments on the macroeconomic performance. Moreover, pro-cyclical patterns in fi scal policies of many countries during the pre-crisis period did not reveal clear lessons learned that would be benefi cial for fi scal authorities during the crisis years. In the paper we examine effects of the fi scal policy shocks in CE3 (the Slovak Republic, the Czech Republic and Hungary) within different stages of the business cycle by employing threshold vector autoregression (TVAR) model. We calculate fi scal multipliers and generalized impulseresponse functions to assess the responsiveness of the real output to the fi scal policy adjustments. The main objective is to determine whether effects of the fi scal policy shocks differ during expansion and recession. Our results indicate that the size of fi scal multipliers and responsiveness of the real output are generally higher for spending fi scal shocks while effects of revenue fi scal shocks are much less dynamic in all three countries. While the effects of the fi scal spending shocks are more dynamic during recession in the Czech Republic and Hungary, fi scal spending multipliers in the Slovak Republic are generally high during the recession as well though higher during expansion. Moreover, differences in the responsiveness of the real output are slightly higher in case of the expenditure based fi scal adjustments in all three countries (in terms of both, regimes and subperiods).
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In: Politická ekonomie: teorie, modelování, aplikace, Volume 64, Issue 4, p. 377-404
ISSN: 2336-8225
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In: Ekonomika, Volume 60, Issue 1, p. 1-9
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Fiscal and Monetary Policy in the Eurozoneoffers systematic analyses of the economic policy framework of the Eurozone and critiques current ideas about how to move forward, making it essential reading for postgraduate students of economics and of keen interest to researchers, policymakers, journalists, and financial strategists
In: International finance review Volume 18
In: Emerald insight
This book offers a criticalperspective from which to observe evolution of the Euro Area and the European Union in these times of growing economic and political conflict. Key implications of design failures in the Euro Area (i.e. incorrect diagnostics ofthe public finance crisis, single monetary policy failure, heterogeneous macroeconomic environment, asymmetry in macroeconomic policies, obstacles forpolicy coordination) and their contribution to the excessive external andinternal economic imbalances will be critically discussed from the economic, policy and institutional perspectives. This critical insight is used to examineboth institutional asset and economic performance of Europe after the crisis, moving from the authors' shared perspective that the crisis revealed the weakaspects of the whole architecture of the European Union. The economic crisis revealed theexistence of different forms of imbalances inside the Eurozone and highlighted the flaws of the institutional architecture of economic policy in Europe. The greater fragility of some countries in respect to others has triggered abackward process in which national interests have started to prevail over those of both the currency area and the entire European Union. In turn, this has fuelled a progressive decline in confidence in the European institutions and iscreating growing questions of interpretation both in terms of economic theoryand institutional asset. This book focuses on these issues and on the degree of legitimacy of the European institutions resulting therefrom. It aims to investigate the nature and validity of the European integration process emphasizing limits and challenges arising from it.
In: International finance review, volume 18
This book offers a critical perspective from which to observe evolution of the Euro Area and the European Union in these times of growing economic and political conflict.
In: International finance review Volume 18
In: International Finance Review Ser. v.18
In: Central European journal of public policy: CEJPP, Volume 17, Issue 2, p. 13-32
ISSN: 1802-4866
Abstract
In recent years, gender inequality has been considered the main characteristic of insufficient gross domestic product (GDP) growth. This paper discusses the evolution of GDP per capita in 21 countries of the European Union between 2015 and 2019. Using panel regression, we investigated the change in GDP per capita through five variables. The analysis results showed that female employment rate is the most statistically significant and positive variable on GDP. Gender Equality Index also appeared to be an essential variable. The second part of our analysis consisted of an explanatory spatial data analysis of all variables to examine the spatial dimension of the variables. To explain spatial econometrics, we used selected methods, namely, choropleth maps, Local Indicators of Spatial Association (LISA) cluster analysis, Moran's scatter plots, and Moran's I statistics. Based on the visualization of choropleth maps, GDP per capita did not change during the observed period, even though the values of the explanatory variables changed. For GDP per capita, the same applies in the case of LISA cluster analysis. At the end of the monitored period, the countries were included in the same cluster as at the beginning. When plotting Moran's scatter plot, it was found that GDP per capita did not tend to have positive or negative spatial autocorrelation or no spatial autocorrelation. Moran's I statistic showed that GDP per capita values were not randomly dispersed; they were grouped according to a specific formula into clusters.