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Estimating the exchange rate in the context of Romania's integration in the Eurozone

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  • Laura Mădălina PÎRŞCOVEANU

    (Bucharest University of Economic Studies, Romania)

Abstract

In this article I want to elaborate a case study on for estimating the equilibrium exchange rate in the context of Romania’s accession to the Eurozone. This paper reveals an econometric model between real exchange rate and its determining factors based on the methodology BEER. I started this study because currently the challenge for Romania is joining ERM II and hence the Economic and Monetary Union. Given the exchange rate volatility and the implications it may have on the Romanian economy, it is important to determine whether or not there were internal devaluations.

Suggested Citation

  • Laura Mădălina PÎRŞCOVEANU, 2016. "Estimating the exchange rate in the context of Romania's integration in the Eurozone," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(607), S), pages 249-258, Summer.
    • Handle: RePEc:agr:journl:v:xxiii:y:2016:i:2(607):p:249-258
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    References listed on IDEAS

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    1. Aura Gabriela SOCOL, 2011. "Costs of Adopting a Common European Currency. Analysis in Terms of the Optimum Currency Areas Theory," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(555)), pages 89-100, February.
    2. Rodrik, Dani, 2005. "Growth Strategies," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 14, pages 967-1014, Elsevier.
    3. Ricci, Luca Antonio, 2008. "A Model of an Optimum Currency Area," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 2, pages 1-31.
    4. Cottani, Joaquin A & Cavallo, Domingo F & Khan, M Shahbaz, 1990. "Real Exchange Rate Behavior and Economic Performance in LDCs," Economic Development and Cultural Change, University of Chicago Press, vol. 39(1), pages 61-76, October.
    5. Altar, Moisa & Albu, Lucian Liviu & Dumitru, Ionut & Necula, Ciprian, 2009. "Estimarea Cursului Real de Echilibru si a Deviatiilor pentru Romania," Studii Economice 090706, Institutul National de Cercetari Economice (INCE).
    6. Mr. Ghiath Shabsigh & Ilker Domaç, 1999. "Real Exchange Rate Behavior and Economic Growth: Evidence from Egypt, Jordan, Morocco, and Tunisia," IMF Working Papers 1999/040, International Monetary Fund.
    7. Tamim Bayoumi, 1992. "The Effect of the ERM on Participating Economies," IMF Staff Papers, Palgrave Macmillan, vol. 39(2), pages 330-356, June.
    8. Mr. Ronald MacDonald & Mr. Peter B. Clark, 1998. "Exchange Rates and Economic Fundamentals: A Methodological Comparison of BEERs and FEERs," IMF Working Papers 1998/067, International Monetary Fund.
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