Publication detail

The TT Index as An Indicator of Macroeconomic Vulnerability of EU New Member States

Author(s): prof. PhDr. Petr Teplý Ph.D., Dr. David Tripe (Massey University, New Zealand)
Type: Articles in journals with impact factor
Year: 2015
Number: 0
ISSN / ISBN: ISSN: 0013-3035
Published in: Journal of Economics, Slovakia
Publishing place: Bratislava, Slovak Republic
Keywords: Euro, European Union, macroprudential indicators, TT index
JEL codes:
Suggested Citation: Teply, P., Tripe, D. (2015). The TT Index as an Indicator of Macroeconomic Vulnerability of EU New Member States. Journal of Economics. Vol. 63, No. 1, pp. 19–33
Grants: GACR 14-02108S The nexus between sovereign and bank crises VŠE IP100040
Abstract: This paper reviews some of the factors that potentially contribute to macroprudential weakness, and thus concerns about macroeconomic and financial system health in the new EU member states of Central and Eastern Europe. In general, the consequences of the global 2008 – 2009 crisis were more severe in some of the new EU countries, and it is useful therefore to look at the experiences in the different countries to try and understand the reasons for the different outcomes and look to see what lessons may be learned. One of the factors having an impact on recovery from the crisis is in currency relationships, with Estonia, Latvia, Slovenia and Slovakia being members of the Eurozone, and some other countries in fixed exchange rate relationships. In this paper we present the construction of a new indicator (named the TT index) evaluating macroeconomic vulnerability of the new EU countries, which is based on seven macroprudential indicators and calculated for the years 2008 and 2013.


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