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Equilibrium exchange rate in the Czech Republic

The result's identifiers

  • Result code in IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F15%3A86094816" target="_blank" >RIV/61989100:27510/15:86094816 - isvavai.cz</a>

  • Result on the web

    <a href="http://apps.webofknowledge.com/full_record.do?product=WOS&search_mode=GeneralSearch&qid=3&SID=D19j9DnDLh7koi6WE9g&page=1&doc=5" target="_blank" >http://apps.webofknowledge.com/full_record.do?product=WOS&search_mode=GeneralSearch&qid=3&SID=D19j9DnDLh7koi6WE9g&page=1&doc=5</a>

  • DOI - Digital Object Identifier

Alternative languages

  • Result language

    angličtina

  • Original language name

    Equilibrium exchange rate in the Czech Republic

  • Original language description

    Lots of possible explanations of the development of the exchange rate can be found in the available literature. The aim of this paper is to find which factors in-fluence the development of the Czech currency (measured as real effective exchange rate) using the Equilibrium Exchange Rate Approach (EER) and to assess periods with over valuated and under valuated exchange rate. This approach defines varia-bles that cause changes in the level of the exchange rate and assess its effect on equi-librium exchange rate. In the case of empirical analysis, there exist a lot of econo-metric methods that can be used. This article is based on the (Johansen) cointegra-tion analysis. Since principal of EER is to find lung run equilibrium, Vector Error Correction Model (VECM) is constructed. Economic theory defines some variables that influence equilibrium exchange rate. The most important of them are the labour productivity, interest rates and government or foreign debt. These variables are also used in this article. We use quarterly data from 2000 to 2014.

  • Czech name

  • Czech description

Classification

  • Type

    D - Article in proceedings

  • CEP classification

  • OECD FORD branch

    50202 - Applied Economics, Econometrics

Result continuities

  • Project

  • Continuities

    S - Specificky vyzkum na vysokych skolach

Others

  • Publication year

    2015

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Data specific for result type

  • Article name in the collection

    Mathematical Methods in Economics, MME 2015 : 33rd international conference : conference proceedings : Cheb, Czech Republic, September 9-11, 2015

  • ISBN

    978-80-261-0539-8

  • ISSN

  • e-ISSN

    neuvedeno

  • Number of pages

    6

  • Pages from-to

    7-12

  • Publisher name

    University of West Bohemia

  • Place of publication

    Plzeň

  • Event location

    Cheb

  • Event date

    Sep 9, 2015

  • Type of event by nationality

    EUR - Evropská akce

  • UT code for WoS article

    000387898900002