The Balassa-Samuelson effect is usually seen as the prime explanation of the continuous real appreciation of central and east European (CEE) transition countries' currencies against their western counterparts. The response of a small country's real exchange rate to various shocks is derived in a...

This paper investigates the formalisation that in a small open economy flexible exchange rates act as a 'shock absorber' and mitigate the effects of external shocks more effectively. An intertemporal small open economy model with nominal rigidities, in which real shocks generate internal...

How should resource-rich economies handle the balance of payments adjustment required aftercommodity price declines? This paper addresses the question theoretically by developing asimple two-period multi-sector model based on Nakatani (2016) to compare different exchangerate policies, and...

The purpose of this study is to analyze the relationship between real exchange rate and the balance of external trade of Turkey by using the intermediate goods, capital goods, consumption goods and total external trade data, within the extended Marshall-Lerner Condition framework, for...

This paper calculates an equilibrium level for Net Foreign Assets (NFA) in Colombia, and discusses its implications for the real exchange rate (RER). In order to obtain the equilibrium level of NFA, we estimate a cointegrating vector with fixed-effects panel data adjusted by using Dynamic Least...

The Balassa-Samuelson effect is usually seen as the prime explanation of the continuous real appreciation of central and east European (CEE) transition countries' currencies against their western counterparts. The response of a small country's real exchange rate to various shocks is derived in a...

The paper presents both theoretical and an empirical analysis of factors influencing the prices of non-tradable goods and services in the Czech economy. The analysis discusses the development of the real exchange rate of the Czech koruna and quantifies the size of the real exchange rate...

The Balassa-Samuelson effect is usually seen as the prime explanation of the continuous real appreciation of central and east European (CEE) transition countries' currencies against their western counterparts. The response of a small country's real exchange rate to various shocks is derived in a...

The Balassa-Samuelson effect is usually seen as the prime explanation of the continuous real appreciation of central and east European (CEE) transition countries' currencies against their western counterparts. The response of a small country's real exchange rate to various shocks is derived in a...

This paper constructs an early warning system for currency crises in Nigeria based on selected key macroeconomic indicators. It estimates the probabilities of currency crises as a logistic function of the included variables within the framework of a logit model. Particularly, the extent to which...