Behavior of the Central Europe exchange rates to the Euro and US dollar

• Authors: Tadeusz Waściński , Grzegorz Przekota , Lidia Sobczak
• Languages of publication: EN

Abstracts

EN

Our objective has been to measure an impact of the two main global currencies - Euro and USD on shaping of exchange rates in countries of Central Europe. We have also endeavored to measure whether and to what extent a different approach to the Euro introduction as well as differentiated macroeconomic situation of these countries influenced the behavior of their exchange rates. The hitherto analyses indicate that the PLN rate of exchange was until 2004 strongly tied to the USD, but since 2004 links with the EUR exchange rate have become stronger. However the exchange rates of other countries in the region had been tied to the EUR earlier than the PLN exchange rate as they already had strong such links in the whole period of our analysis. Currency integration of the Central European countries is very strong although they are formally outside the euro zone and formation of their exchange rates should be perceived through trends of the EUR exchange rate versus other currencies, the USD.

Keywords

EN

exchange rate; Central European; cointegration analysis; euro zone

• Publisher: Katedra Ekonometrii i Statystyki, Szkoła Główna Gospodarstwa Wiejskiego w Warszawie
• Journal: Metody Ilościowe w Badaniach Ekonomicznych
• Year: 2011
• Volume: 12
• Issue: 1
• Pages: 165-176

Dates

published

2011

Contributors

author

Tadeusz Waściński

• Faculty of Production Engineering, Warsaw University of Life Sciences – SGGW

author

Grzegorz Przekota

• Institute of Economics and Management, Koszalin University of Technology

author

Lidia Sobczak

• The Faculty of Management, Warsaw University of Technology (Politechnika Warszawska – PW)

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