The Euro Plus Pact was approved by 23 EU countries in March 2011. The Pact stipulates a range of quantitative targets meant to strengthen competitiveness and convergence with the ultimate aim of preventing unsustainable financial imbalances from accumulating. This paper uses Granger causality...

This study employs a reduced-form VAR model to estimate trade balance’s responses to a positive shock to the real VND/USD exchange rate. For this purpose, we apply identification restrictions based on the conclusion by Krugman, Obstfeld and Melitz (2012), and on the theory of the AA-DD model...

Background An econometric analysis of the twin deficit hypothesis is of special importance for the Republic of North Macedonia in view of its perspective membership in the European Union and from the point of view of its macroeconomic stability in the long run. Objectives The objective of this...