THE RELATIONSHIP BETWEEN EXCHANGE RATE AND INFLATION: THE CASE OF WESTERN BALKANS COUNTRIES

Besnik FETAİ; Paul Sergius KOKU; Agron CAUSHİ; Ariana FETAİ

doi:https://doi.org/10.17261/Pressacademia.2017.358

Makale detayları

THE RELATIONSHIP BETWEEN EXCHANGE RATE AND INFLATION: THE CASE OF WESTERN BALKANS COUNTRIES

Yazarlar:

Besnik FETAİ | Paul Sergius KOKU | Agron CAUSHİ | Ariana FETAİ

Yayıncı:

PressAcademia

Ana Başlıklar:

Sosyoloji & antropoloji

Dergi:

Journal of Business Economics and Finance 2016 Vol.5 Issue 4, pp.360-364

Belge Tipi:

Makale

Yayın Tarihi:

12/2016

Belge Dili:

Türkçe

Document ID (Org No.):

2000737802

Sıklık:

Üç Aylık

eISSN:

2146-7943

DOI:

https://doi.org/10.17261/Pressacademia.2017.358

Özet:

 


The paper investigates empirically the relationships between
exchange rates and inflation in Western Balkan countries. The literature on the
transition countries has recently focused on exchange rate as a shock absorber
and downplayed its costs to macroeconomic stabilization.  However, the decision to apply a different
exchange rate regime depends on the costs and benefits in giving up an exchange
rate instrument.  With this in mind, the
objective of this study is to determine whether fixed exchange rates play a
significant role in inflationary performance or whether flexible exchange rates
perform as a better shock-absorbing instrument in the Western Balkans. The
result reveals that an exchange rate is still the main source of inflationary
pressures in Western Balkan countries. Thus policy makers must weigh the
relative costs and benefits associated with introducing a flexible exchange
rate in small open economies because such regime is likely to incur more costs
than benefits. 


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Makale detayları

THE RELATIONSHIP BETWEEN EXCHANGE RATE AND INFLATION: THE CASE OF WESTERN BALKANS COUNTRIES

Yazarlar: Besnik FETAİ | Paul Sergius KOKU | Agron CAUSHİ | Ariana FETAİ

Yayıncı: PressAcademia

Ana Başlıklar: Sosyoloji & antropoloji

Dergi: Journal of Business Economics and Finance 2016 Vol.5 Issue 4, pp.360-364

Belge Tipi: Makale

Yayın Tarihi: 12/2016

Belge Dili: Türkçe

Document ID (Org No.): 2000737802

Sıklık: Üç Aylık

eISSN: 2146-7943

DOI: https://doi.org/10.17261/Pressacademia.2017.358

Sayı

Yazarlar:

Besnik FETAİ | Paul Sergius KOKU | Agron CAUSHİ | Ariana FETAİ

Yayıncı:

PressAcademia

Ana Başlıklar:

Sosyoloji & antropoloji

Dergi:

Journal of Business Economics and Finance 2016 Vol.5 Issue 4, pp.360-364

Belge Tipi:

Makale

Yayın Tarihi:

12/2016

Belge Dili:

Türkçe

Document ID (Org No.):

2000737802

Sıklık:

Üç Aylık

eISSN:

2146-7943

DOI:

https://doi.org/10.17261/Pressacademia.2017.358