EXCHANGE RATE DEVELOPMENT AND VOLATILITY IN NEW EUROPEAN UNION MEMBER STATES

• Authors: Stavárek Daniel
• Languages of publication: EN

Abstracts

EN

This paper assesses the exchange rate development and the volatility in six new EU member states during the period November 1996 - April 2006. The development is examined by the calculating various rates of return. The exchange rate volatility is analyzed by using the moving average standard deviations of the annualized daily returns of the nominal bilateral exchange rates. The three ERM II participating currencies (SIT, CYP, SKK) entered into the mechanism at the optimal time of stable exchange rate development and low volatility. However, the admissible fluctuation band ±2.25% seems to be too narrow for the remaining three currencies (CZK, HUF, PLN). Thus, these currencies should remain out of ERM II for some time.

Keywords

EN

ERM II; EXCHANGE RATES; RATE OF RETURN; VOLATILITY

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2006
• Volume: 54
• Issue: 6
• Pages: 521-538
• Document type: ARTICLE

Contributors

author

Stavárek Daniel

• D. Stavarek, Ekonomický ústav SAV, Sancová 56, 811 05 Bratislava 1, Slovak Republic

Identifiers

CEJSH db identifier

06SKAAAA01603504