Published in:CESifo Working Paper Series ; No. 1928
Extent:
1 Online-Ressource (21 p)
Language:
Not determined
DOI:
10.2139/ssrn.968603
Identifier:
Origination:
University thesis:
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 2007 erstellt
Description:
We find that productivity gains in tradables cause an appreciation of the real exchange rate via both tradable and nontradable prices in the CEE-5 and have no affect in the Baltic countries, while they lead to a depreciation of the real exchange rate of tradables in OECD economies that overcompensates the appreciation due to nontradable prices. Rising net foreign liabilities lead to a real appreciation in the Baltic countries instead of the expected depreciation found in OECD and CEE-5 countries. These differences are due to the different impact of the fundamentals on the real exchange rate depending on the time horizon studied