Work detail

The Exchange Rate Pass-Through in Central and Eastern Europe

Author: Mgr. Barbora Mirková
Year: 2014 - summer
Leaders: prof. Roman Horváth Ph.D.
Work type: Finance, Financial Markets and Banking
Language: English
Pages: 74
Awards and prizes:
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


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