From a financial standpoint, the mechanics of the carry trade has been recently examined in Brunnermeier et al. (2009). They showed that shocks to interest rate differentials lead to carry trade activity and to significant reactions in the bilateral exchange rates vis-a-vis the US dollar that...

The article provides empirical evidence on the effects of monetary policy shocks in the three largest new European Union (EU) economies: Czech Republic, Hungary and Poland. Vector autoregression (VAR) system estimates show that the co-movement of macroeconomic variables, conditional on a...

The paper analyses the financial structure of the private sector in the Czech Republic, Hungary and Poland and assesses its implications for the monetary transmission mechanism. The financial accounts of these countries provide a picture of a private sector which is predictably financially less...