The Exchange Rate Pass-Through in Central and Eastern Europe
| Author: | Mgr. Barbora Mirková |
|---|---|
| Year: | 2014 - summer |
| Leaders: | prof. Roman Horváth Ph.D. |
| Consultants: | |
| Work type: | Finance, Financial Markets and Banking Masters |
| Language: | English |
| Pages: | 74 |
| Awards and prizes: | |
| Link: | https://is.cuni.cz/webapps/zzp/detail/137942/ |
| Abstract: | This thesis examines the exchange rate pass-through into consumer prices in Central and Eastern Europe. The study is based on quarterly data of 12 countries from 2003 to 2013. Estimations are conducted using heterogeneous panel cointegration m ethods, namely the mean group and the pooled mean group estimators. Fixed effects are use d as a reference. The thesis provides short- run and long-run estimates of the exchange rate pas s-through for the individual countries and for the region as a whole. Based on the results, we con clude that the exchange rate pass-through is highly variable across Central and Eastern Europe. We find that there is no clear distinction between the pass-through rates in euro area countri es, EU countries not using the euro and non- EU countries. Further, we find that the generally a ccepted concept of higher exchange rate pass- though in developing countries does not hold in thi s region |
