Using a model of a small open economy operating under dual foreign exchange markets, free exchange rate for financial transactions and quasi-fixed exchange rate for commercial transactions, this paper analyses the dynamic adjustment of the foreign exchange rates, when terms of trade, and...

This paper examines persistent concerns that trade openness in South-East Europe is much less advanced than it was for the former CEECs in the mid to late 1990s. Using econometric tests, we find that trade patterns appear to remain problematic. Second, partial equilibrium simulations are used to...

Using a model of a small open economy operating under dual foreign exchange markets, free exchange rate for financial transactions and quasi-fixed exchange rate for commercial transactions, this paper analyses the dynamic adjustment of the foreign exchange rates, when terms of trade, and...

This paper examines persistent concerns that trade openness in South-East Europe is much less advanced than it was for the former CEECs in the mid to late 1990s. Using econometric tests, we find that trade patterns appear to remain problematic. Second, partial equilibrium simulations are used to...