The results of the first decade economic transition are very uneven and distributed according to a sub-regional pattern. group 'leading reformers' consists middle-income countries democratic capitalism Central Europe Baltic region (CEB). second less advanced reformers includes mainly lower- lower-middle-income Commonwealth Independent States (CIS) where both democracy still immature sometimes heavily distorted. This differentiation can be explained by adopted strategies political factors...

Abstract The aim of this study is to investigate sources food prices volatility. analysis uses daily series for volatility corn, soybean, wheat, rice, US dollar, crude oil, and SP500 futures spanning the period January 4, 2000 April 1, 2017. authors employ generalized vector autoregressive framework in rolling sample approach order capture time-varying nature spillovers. results reveal that: spillovers measures change over time; most are observed within two groups markets: markets “non-food”...

We study the role of public debt sustainability in implementation national fiscal rules across 11 Central and Eastern European (CEE) countries. ask whether episodes unsustainable surges debt, i.e. 'fiscal bubbles', lead to adjustments frameworks CEE economies. model how costs benefits explain why politicians select different levels stringency and, crucially, bubbles bolster politicians' willingness tighten via perception social pressure channels. On empirical side, employing a bubble...

With high growth rates in Asia, most notably China, India, and Southeast Central Eurasia's economic center of gravity is rapidly shifting to the East. At same time, Europe faces serious barriers long term. The volume examines causes consequences this major shift power considers options available policymakers various parts Asia. This work based on a Center for Social Economic Research conference.

The European Central Bank (ECB) recently became engaged in macro-prudential policies and the micro-prudential supervision of largest Euro area banks. These new tasks should help complete financial integration, make more resilient to instability risks. However, multiplicity mandates instruments involves a risk their inconsistency which could compromise ECB’s core price-stability mandate as well its independence. experience central banks during recent global crisis confirms that such risks are...

This article examines the link between a nominal exchange rate and macrofundamentals in Central Eastern European (CEE) countries. We use model based on monetary policy rule as theoretical framework that explains relations price level, risk premium, output gap, expected inflation. It allows for endogeneity of – issue ignored widely used model. The sample covers period January 2000 December 2014, so data are not plagued by high-inflation differentials characteristic early transition include...

This paper offers a new de facto exchange rate regime classification that draws on the strengths of three popular classifications. Its two hallmarks are careful treatment nexus between an and financial openness use formal statistical tools (the trimmed k-means k-nearest neighbour methods). It is demonstrated our strategy minimises impact differences market-determined official rates 'fix' 'float' categories. Moreover, it more suited to assess empirical relevance Mundellian trilemma...

Abstract The purpose of this paper is to investigate the causal relations between nominal exchange rates and monetary fundamentals. analysis conducted using panel quarterly data from period 2001–12 for Central Eastern European countries (including Turkey) with relatively flexible rate regimes. reconnects empirical literature on in most recent findings determination advanced economies. Kóyna's approach, which accounts linkages countries, used study. main indicate existence running both...

Abstract The paper examines the effectiveness of macroprudential policy in Indonesia and reactions to economic developments. Using structural vector autoregression data on regulatory LTV ratio, we investigate controlling credit growth real property prices along with effects activity. We find that LTV-based is effective taming medium run. It, however, not case whose response changes counterintuitive resembles price puzzle found studies monetary policy. Moreover, our results lend moderate...