CEU Electronic Theses and Dissertations, 2008
| Author | Hvozdova, Kateryna |
|---|---|
| Title | The Equilibrium Real Exchange Rate and Misalignment: the Case of Ukraine |
| Summary | The research is devoted to the question of estimating the equilibrium real exchange rate in Ukraine to find out whether the currency remains undervalued, as previous studies have shown, and whether it amplifies the rising inflation in recent years. This question has been tackled with the help of Behavioral Equilibrium Exchange Rate approach. The monthly time series from 1996 till 2007 have been employed to estimate Error Correction Model. The results show that Ukrainian currency is still undervalued and is negatively correlated with the rising inflation, thus bringing support to the view that pegged exchange rate regime is no longer appropriate. However, this conclusion should be treated under reserve and no serious inference should be made, since the results may be biased because of too short time series, structural breaks in the data, initial undervaluation of the exchange rate and fixed exchange rate regime. |
| Supervisor | Campolmi, Alessia |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2008/hvozdova_kateryna.pdf |
Visit the CEU Library.
© 2007-2021, Central European University