Real Interest Rate and Exchange Rate Divergences within the EZ12: Evidence Based at Mean Group Estimators
Since nominal interest rate and nominal exchange rate are common for the Euro-zone (EZ) members, inflation differentials initiate real interest rate and real exchange rate divergences with further spill-over effects. The aim of the research is to investigate in which extent national price level, re...
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| Format: | Article |
| Language: | English |
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Universidad de Huelva
2021-08-01
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| Series: | Revista de Economía Mundial |
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| Online Access: | https://www.uhu.es/publicaciones/ojs/index.php/REM/article/view/4920 |
| _version_ | 1797267298429435904 |
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| author | Olgica Glavaški Emilija Beker Pucar |
| author_facet | Olgica Glavaški Emilija Beker Pucar |
| author_sort | Olgica Glavaški |
| collection | DOAJ |
| description |
Since nominal interest rate and nominal exchange rate are common for the Euro-zone (EZ) members, inflation differentials initiate real interest rate and real exchange rate divergences with further spill-over effects. The aim of the research is to investigate in which extent national price level, real interest rate and real exchange rate, co-move or diverge from supranational EZ variables. The research results, based on heterogeneous dynamic macro-panel data of 12 initial EZ members in the period 1999Q1-2019Q4, confirm heterogeneous adjustment, as well as the lack of balancing towards equilibrium, as a sign of EZ vulnerability.
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| first_indexed | 2024-04-25T01:14:22Z |
| format | Article |
| id | doaj.art-0c47935385d04f758c57e214af29c7b9 |
| institution | Directory Open Access Journal |
| issn | 1576-0162 2340-4264 |
| language | English |
| last_indexed | 2024-04-25T01:14:22Z |
| publishDate | 2021-08-01 |
| publisher | Universidad de Huelva |
| record_format | Article |
| series | Revista de Economía Mundial |
| spelling | doaj.art-0c47935385d04f758c57e214af29c7b92024-03-09T11:49:06ZengUniversidad de HuelvaRevista de Economía Mundial1576-01622340-42642021-08-015810.33776/rem.v0i58.4920Real Interest Rate and Exchange Rate Divergences within the EZ12: Evidence Based at Mean Group EstimatorsOlgica Glavaški0Emilija Beker Pucar1University of Novi Sad, Faculty of Economics in SuboticaUniversity of Novi Sad, Faculty of Economics in Subotica Since nominal interest rate and nominal exchange rate are common for the Euro-zone (EZ) members, inflation differentials initiate real interest rate and real exchange rate divergences with further spill-over effects. The aim of the research is to investigate in which extent national price level, real interest rate and real exchange rate, co-move or diverge from supranational EZ variables. The research results, based on heterogeneous dynamic macro-panel data of 12 initial EZ members in the period 1999Q1-2019Q4, confirm heterogeneous adjustment, as well as the lack of balancing towards equilibrium, as a sign of EZ vulnerability. https://www.uhu.es/publicaciones/ojs/index.php/REM/article/view/4920Euro-zoneprice dynamicsreal exchange ratereal interest rate |
| spellingShingle | Olgica Glavaški Emilija Beker Pucar Real Interest Rate and Exchange Rate Divergences within the EZ12: Evidence Based at Mean Group Estimators Revista de Economía Mundial Euro-zone price dynamics real exchange rate real interest rate |
| title | Real Interest Rate and Exchange Rate Divergences within the EZ12: Evidence Based at Mean Group Estimators |
| title_full | Real Interest Rate and Exchange Rate Divergences within the EZ12: Evidence Based at Mean Group Estimators |
| title_fullStr | Real Interest Rate and Exchange Rate Divergences within the EZ12: Evidence Based at Mean Group Estimators |
| title_full_unstemmed | Real Interest Rate and Exchange Rate Divergences within the EZ12: Evidence Based at Mean Group Estimators |
| title_short | Real Interest Rate and Exchange Rate Divergences within the EZ12: Evidence Based at Mean Group Estimators |
| title_sort | real interest rate and exchange rate divergences within the ez12 evidence based at mean group estimators |
| topic | Euro-zone price dynamics real exchange rate real interest rate |
| url | https://www.uhu.es/publicaciones/ojs/index.php/REM/article/view/4920 |
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