Menu Expand

Do We Really Know That Flexible Exchange Rates Facilitate Current Account Adjustment? Some New Empirical Evidence for CEE Countries

Cite JOURNAL ARTICLE

Style

Herrmann, S. Do We Really Know That Flexible Exchange Rates Facilitate Current Account Adjustment? Some New Empirical Evidence for CEE Countries. Applied Economics Quarterly, 55(4), 295-311. https://doi.org/10.3790/aeq.55.4.295
Herrmann, Sabine "Do We Really Know That Flexible Exchange Rates Facilitate Current Account Adjustment? Some New Empirical Evidence for CEE Countries" Applied Economics Quarterly 55.4, , 295-311. https://doi.org/10.3790/aeq.55.4.295
Herrmann, Sabine: Do We Really Know That Flexible Exchange Rates Facilitate Current Account Adjustment? Some New Empirical Evidence for CEE Countries, in: Applied Economics Quarterly, vol. 55, iss. 4, 295-311, [online] https://doi.org/10.3790/aeq.55.4.295

Format

Do We Really Know That Flexible Exchange Rates Facilitate Current Account Adjustment? Some New Empirical Evidence for CEE Countries

Herrmann, Sabine

Applied Economics Quarterly, Vol. 55 (2009), Iss. 4 : pp. 295–311

17 Citations (CrossRef)

Additional Information

Article Details

Pricing

Author Details

1Sabine Herrmann, Economics Department, Balance of Payments, Exchange Rates and Capital Markets Analysis Division, Wilhelm-Epstein-Str. 14, 60431 Frankfurt. Tel +49 69 9566 – 3785.

Cited By

  1. The impact of the exchange rate on the foreign trade imbalance during the economic crisis in the new EU member states and the Western Balkan countries

    Rajković, Miloš | Bjelić, Predrag | Jaćimović, Danijela | Verbič, Miroslav

    Economic Research-Ekonomska Istraživanja, Vol. 33 (2020), Iss. 1 P.182

    https://doi.org/10.1080/1331677X.2019.1708771 [Citations: 9]
  2. Do flexible exchange rates facilitate external adjustment? A dynamic approach with time-varying and asymmetric volatility

    Habimana, Olivier

    International Economics and Economic Policy, Vol. 14 (2017), Iss. 4 P.625

    https://doi.org/10.1007/s10368-016-0341-7 [Citations: 18]
  3. Friedman Redux: External Adjustment and Exchange Rate Flexibility

    Ghosh, Atish R | Qureshi, Mahvash S | Tsangarides, Charalambos G

    The Economic Journal, Vol. 129 (2019), Iss. 617 P.408

    https://doi.org/10.1111/ecoj.12579 [Citations: 8]
  4. Global Imbalances and the Current Account Adjustment Process: An Empirical Analysis

    Tippkötter, Marius

    SSRN Electronic Journal, Vol. (2010), Iss.

    https://doi.org/10.2139/ssrn.1639790 [Citations: 1]
  5. Exchange Rate Management and Crisis Susceptibility: A Reassessment

    Ghosh, Atish R. | Ostry, Jonathan David | Qureshi, Mahvash Saeed

    IMF Working Papers, Vol. 14 (2014), Iss. 11 P.1

    https://doi.org/10.5089/9781484383971.001 [Citations: 24]
  6. From Crisis to Recovery

    Challenges after the Crisis in Emerging Europe: A Look outside the EU Borders

    Buysse, Kristel | Gurtner, François

    2012

    https://doi.org/10.1057/9781137034830_8 [Citations: 0]
  7. The Effect of Nominal Exchange Rate Volatility on Real Macroeconomic Performance in the CEE Countries

    Arratibel, Olga | Furceri, Davide | Martin, Reiner | Zdzienicka, Aleksandra | Working Paper Series, GATE

    SSRN Electronic Journal, Vol. (2009), Iss.

    https://doi.org/10.2139/ssrn.1553790 [Citations: 2]
  8. The effect of nominal exchange rate volatility on real macroeconomic performance in the CEE countries

    Arratibel, Olga | Furceri, Davide | Martin, Reiner | Zdzienicka, Aleksandra

    Economic Systems, Vol. 35 (2011), Iss. 2 P.261

    https://doi.org/10.1016/j.ecosys.2010.05.003 [Citations: 39]
  9. Capital controls and the real exchange rate: Do controls promote disequilibria?

    Montecino, Juan Antonio

    Journal of International Economics, Vol. 114 (2018), Iss. P.80

    https://doi.org/10.1016/j.jinteco.2018.05.005 [Citations: 16]
  10. External adjustment and trading partners’ exchange rate regimes

    An, Jiyoun | Park, Bokyeong

    Japan and the World Economy, Vol. 37-38 (2016), Iss. P.47

    https://doi.org/10.1016/j.japwor.2016.02.003 [Citations: 1]
  11. Friedman Redux: External Adjustment and Exchange Rate Flexibility

    Ghosh, Atish | Qureshi, Mahvash Saeed | Tsangarides, Charalambos

    IMF Working Papers, Vol. 14 (2014), Iss. 146 P.1

    https://doi.org/10.5089/9781498359245.001 [Citations: 15]
  12. Analyse de la persistance des déséquilibres globaux : Y-a-t-il une spécificité de la zone euro?

    Gnimassoun, Anoh Kodjê Blaise

    Vie & sciences de l'entreprise, Vol. N° 201 (2016), Iss. 1 P.132

    https://doi.org/10.3917/vse.201.0132 [Citations: 0]
  13. Current account drivers and exchange rate regimes in Central and Eastern Europe

    Harkmann, Kersti | Staehr, Karsten

    Journal of International Money and Finance, Vol. 110 (2021), Iss. P.102286

    https://doi.org/10.1016/j.jimonfin.2020.102286 [Citations: 4]
  14. Exchange Rate Regimes and Current Account Adjustment: An Empirical Investigation

    Eguren Martin, Fernando

    SSRN Electronic Journal, Vol. (2015), Iss.

    https://doi.org/10.2139/ssrn.2649851 [Citations: 0]
  15. Current account sustainability in Sub-Saharan Africa: Does the exchange rate regime matter?

    Gnimassoun, Blaise | Coulibaly, Issiaka

    Economic Modelling, Vol. 40 (2014), Iss. P.208

    https://doi.org/10.1016/j.econmod.2014.04.017 [Citations: 26]
  16. Is the exchange rate regime really irrelevant for external adjustment?

    Ghosh, Atish R. | Qureshi, Mahvash S. | Tsangarides, Charalambos G.

    Economics Letters, Vol. 118 (2013), Iss. 1 P.104

    https://doi.org/10.1016/j.econlet.2012.09.010 [Citations: 33]
  17. Exchange Rate Management and Crisis Susceptibility: A Reassessment

    Ghosh, Atish R | Ostry, Jonathan D | Qureshi, Mahvash S

    IMF Economic Review, Vol. 63 (2015), Iss. 1 P.238

    https://doi.org/10.1057/imfer.2014.29 [Citations: 90]

Abstract

This paper examines the relationship between the exchange rate regime and the pace of current account adjustment. The panel data set we refer to includes 11 catching-up countries from Central and Eastern Europe between 1994 and 2007. The exchange rate regime is measured by a continuous z-score measure of exchange rate volatility proposed by Gosh, Gulde, and Wolf (2003). Based on a basic autoregression estimation, the results indicate that a more flexible exchange rate regime significantly enhances the rate of current account adjustment.

JEL Classification: F3, F4