The Impact Of Exchange Rate Pass-Through On Serbian Export Competitiveness

• Authors: Ivan Marković , Milan Marković
• Languages of publication: EN

Abstracts

EN

The permanent existence of inflation in Serbia adversely affects achievement of macroeconomic stability. Its effects are reflected in a decrease in the real exchange rate, low price competitiveness of exports and deterioration in the balance of payments. The real exchange rate is an instrument which shows that in conditions of faster growth rate in a country than abroad, the domestic economy can't be competitive in the international market. Implementation of appropriate exchange rate regime inevitably leads to problems of exchange rate changes on import prices and inflation. The research aims to demonstrate the interdependence of inflation and depreciation, and the fact that the general price level increase is a main factor that hinders the realization of the positive effects of the national currency depreciation. Unstable monetary situation in the country undermines the goal of stimulating exports through an increase in the nominal exchange rate and by reducing export prices in foreign currency. Export becomes uncompetitive, while the depreciation of the national currency is quickly spread to inflation through the exchange rate pass-through.

Keywords

EN

inflation; real exchange rate; depreciation; competitiveness; exchange rate pass-through

BS

inflacija; realni devizni kurs; depresijacija; konkurentnost; transmisioni mehanizam deviznog kursa

• Publisher: Sciendo
• Journal: Economic Themes
• Year: 2014
• Volume: 52
• Issue: 2
• Pages: 197-214

Dates

published

2014-06-01

received

2014-01-24

accepted

2014-06-10

online

2015-03-25

Contributors

author

Ivan Marković

• University of Niš, Faculty of Economics, Serbia

author

Milan Marković

• PhD student; scholarship from the Ministry of Education, Science and Technological Development of the Republic of Serbia

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Identifiers

DOI

10.1515/ethemes-2014-0014