Maintaining Competitiveness Under Equilibrium Real Appreciation : The Case of Slovakia /

This paper evaluates competitiveness in Slovakia and estimates the equilibrium real exchange rate for the koruna. Slovak wages and prices are found to have been relatively low even when adjusted for differences in relative income and productivity, suggesting an undervalued real exchange rate. Howeve...

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Detalhes bibliográficos
Autor principal: Oomes, Nienke
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2005.
Colecção:IMF Working Papers; Working Paper ; No. 2005/065
Acesso em linha:Full text available on IMF
Descrição
Resumo:This paper evaluates competitiveness in Slovakia and estimates the equilibrium real exchange rate for the koruna. Slovak wages and prices are found to have been relatively low even when adjusted for differences in relative income and productivity, suggesting an undervalued real exchange rate. However, recent rapid nominal appreciation has reduced most or all of this undervaluation and has brought the real exchange rate near or above equilibrium. The productivity-driven equilibrium real appreciation rate during 2005?09 is estimated at close to 3 percent per year but can be lower with the help of fiscal consolidation.
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Descrição Física:1 online resource (29 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students