Identifying the determinants that cause the value movements of currencies Denar, Kuna and Dinar
This paper aims to evaluate the relationship of real exchange rates of domestic currencies with macroeconomic variables in Macedonia, Croatia and Serbia by using econometric approaches. Macedonia is characterized by the regime of a fixed exchange rate, Croatia is characterized by a managed floating...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2018-11-01
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| Series: | Croatian Review of Economic, Business and Social Statistics |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/crebss-2018-0015 |
| _version_ | 1797330174842241024 |
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| author | Bucevska Vesna Mojanoski Goran |
| author_facet | Bucevska Vesna Mojanoski Goran |
| author_sort | Bucevska Vesna |
| collection | DOAJ |
| description | This paper aims to evaluate the relationship of real exchange rates of domestic currencies with macroeconomic variables in Macedonia, Croatia and Serbia by using econometric approaches. Macedonia is characterized by the regime of a fixed exchange rate, Croatia is characterized by a managed floating exchange rate, while Serbia is characterized by the regime of a floating exchange rate. The choice of an exchange rate regime is an important aspect of economic management, in order to ensure competitiveness, macroeconomic stability and development. Evaluation of the relationship of Croatian, Macedonian and Serbian real exchange rates is performed by employing the consistent methodology of vector error correction modelling (VECM). According to the results of the analyses of the real exchange rates on the long run, the selected independent variables have long-run causality in case of the real exchange rate of Croatian Kuna. In case of Macedonian Denar and Serbian Dinar the VECM is inappropriate. |
| first_indexed | 2024-03-08T07:16:16Z |
| format | Article |
| id | doaj.art-410acb9d6a924a04ac5aa5994fcd0ea9 |
| institution | Directory Open Access Journal |
| issn | 2459-5616 |
| language | English |
| last_indexed | 2024-03-08T07:16:16Z |
| publishDate | 2018-11-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Croatian Review of Economic, Business and Social Statistics |
| spelling | doaj.art-410acb9d6a924a04ac5aa5994fcd0ea92024-02-03T00:53:28ZengSciendoCroatian Review of Economic, Business and Social Statistics2459-56162018-11-0142788510.2478/crebss-2018-0015Identifying the determinants that cause the value movements of currencies Denar, Kuna and DinarBucevska Vesna0Mojanoski Goran1Faculty of Economics, Ss. Cyril and Methodius University, Republic of MacedoniaAssociation of Young Analysts and Researchers, Republic of MacedoniaThis paper aims to evaluate the relationship of real exchange rates of domestic currencies with macroeconomic variables in Macedonia, Croatia and Serbia by using econometric approaches. Macedonia is characterized by the regime of a fixed exchange rate, Croatia is characterized by a managed floating exchange rate, while Serbia is characterized by the regime of a floating exchange rate. The choice of an exchange rate regime is an important aspect of economic management, in order to ensure competitiveness, macroeconomic stability and development. Evaluation of the relationship of Croatian, Macedonian and Serbian real exchange rates is performed by employing the consistent methodology of vector error correction modelling (VECM). According to the results of the analyses of the real exchange rates on the long run, the selected independent variables have long-run causality in case of the real exchange rate of Croatian Kuna. In case of Macedonian Denar and Serbian Dinar the VECM is inappropriate.https://doi.org/10.2478/crebss-2018-0015fiat currencyexchange ratereal exchange ratevector error correction modelc01e41 |
| spellingShingle | Bucevska Vesna Mojanoski Goran Identifying the determinants that cause the value movements of currencies Denar, Kuna and Dinar Croatian Review of Economic, Business and Social Statistics fiat currency exchange rate real exchange rate vector error correction model c01 e41 |
| title | Identifying the determinants that cause the value movements of currencies Denar, Kuna and Dinar |
| title_full | Identifying the determinants that cause the value movements of currencies Denar, Kuna and Dinar |
| title_fullStr | Identifying the determinants that cause the value movements of currencies Denar, Kuna and Dinar |
| title_full_unstemmed | Identifying the determinants that cause the value movements of currencies Denar, Kuna and Dinar |
| title_short | Identifying the determinants that cause the value movements of currencies Denar, Kuna and Dinar |
| title_sort | identifying the determinants that cause the value movements of currencies denar kuna and dinar |
| topic | fiat currency exchange rate real exchange rate vector error correction model c01 e41 |
| url | https://doi.org/10.2478/crebss-2018-0015 |
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