Can the Taylor Rules Explain Exchange Rate Movements? Evidence from Central and Eastern European Countries

• Autorzy: Chi-Wei Su , Deng-kui Si , Hsu-Ling Chang , Xiao-Lin Li
• Języki publikacji: EN

Abstrakty

EN

This study investigates whether the Taylor rules can explain exchange rates for ten Central and Eastern European countries of the conditional distribution by employing a nonlinear quantile stationary test with the Fourier function, which combines the quantile unit root test with smooth unknown multiple breaks through the Fourier function and thus provide more accurate analysis results. We find that the choices and effectiveness of the monetary policies in Central Eastern European economies are highly influenced by the Taylor rules, and also influenced by external factors originating from the United States. Also, our findings point out the bilateral real exchange rates based on Taylor the rules convergence follow a non-linear way. Our results have important policy implications for Central and Eastern European Countries.(original abstract)

Słowa kluczowe

EN

Taylor rule; Structural changes; Monetary policy

PL

Reguła Taylora; Zmiany strukturalne; Polityka pieniężna

• Czasopismo: Argumenta Oeconomica
• Rocznik: 2018
• Numer: nr 2 (41)
• Strony: 35--60

Twórcy

autor

Chi-Wei Su

• Qingdao University, Qingdao, Shandong, China.

autor

Deng-kui Si

• Qingdao University, Qingdao, Shandong, China.

autor

Hsu-Ling Chang

• Ling Tung University, Taichung, Taiwan

autor

Xiao-Lin Li

• Qingdao, Shandong, China

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Identyfikatory

DOI

10.15611/aoe.2018.2.02