Browsing by Subject "Slovakia"

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  • Bighelli, Tommaso; Lalinsky, Tibor; Vanhala, Juuso (2022)
    Bank of Finland Research Discussion Papers 1/2022
    We study the consequences of the COVID-19 pandemic on productivity by matching firm performance outcomes with corresponding firm-level information on government support. Our cross-country evidence for five EU countries shows that the pandemic led to a significant short-term decline in productivity predominantly driven by the within-firm growth component. A thorough comparative analysis of the distribution of employment and overall direct subsidies, considering separately also relative firm-level support and the probability of being supported, reveals several common characteristics. In general, the pandemic support was distributed rather efficiently, i.e. towards “deserving” firms and only marginally towards “zombie” and non-viable firms. However, government subsidies appear to have had a limited effect on aggregate productivity developments.
  • Égert, Balázs; Lommatzsch, Kirsten (2004)
    BOFIT Discussion Papers 9/2004
    This paper sets out to estimate equilibrium real exchange rates for the Czech Republic, Hungary, Po-land, Slovakia and Slovenia.A theoretical model is developed that provides an explanation for the ap-preciation of the real exchange rate based on tradable prices in the acceding countries.Our model can be considered as a competing but also completing framework to the traditional Balassa-Samuelson model.With this as a background, alternative cointegration methods are applied to time series (Engle-Granger, DOLS, ARDL and Johansen) and to three small-size panels (pooled and fixed effect OLS, DOLS, PMGE and MGE), which leaves us with around 5,000 estimated regressions.This enables us to examine the uncertainty surrounding estimates of equilibrium real exchange rates and the size of the underlying real misalignments. Keywords: Real exchange rate, equilibrium exchange rate, tradable prices, transition, cointegration JEL: F31
  • Mehrotra, Aaron; Slacik, Tomás (2009)
    BOFIT Discussion Papers 18/2009
    We evaluate the monetary determinants of inflation in the Czech Republic, Hungary, Poland and Slovakia by using the McCallum rule for money supply. The deviation of actual money growth from the rule is included in the estimation of Phillips curves for the four economies by Bayesian model averaging. We find that money provides information about price developments over a horizon of ten quarters ahead, albeit the estimates are in most cases rather imprecise. Moreover, the effect of excessive monetary growth on inflation is mixed: It is positive for Poland and Slovakia, but negative for the Czech Republic and Hungary. Nevertheless, these results suggest that money does provide information about future inflation and that a McCallum rule could potentially be used in the future as an additional indicator of the monetary policy stance once the precision of the estimation improves with more data available.
  • Bask, Mikael; Fidrmuc, Jarko (2006)
    Bank of Finland Research Discussion Papers 10/2006
    Published in Open Economies Review, Volume 20, Issue 5, November 2009, Pages 589-605
    We present a model of exchange rates, which incorporates the monetary approach and technical trading, and we present the reduced form based on the minimal state variable solution, where both fundamentals and backward-looking term determine the spot exchange rates.Finally, we estimate the impact of the monetary fundamentals for a panel of Central and Eastern European countries (Czech Republic, Poland, Romania and Slovakia) in the second half of the 1990s as well as the complete model of exchange rate determination for daily data over the more recent free-floating period.Key words: foreign exchange market, fundamental analysis, panel cointegration, technical analysis JEL classification numbers: C23, F31, F36
  • Égert, Balázs (2002)
    BOFIT Discussion Papers 6/2002
    Published in Economics of Transition vol 10, no 2 (2002), pp. 273-309
    This paper studies the Balassa-Samuelson effect in the Czech Republic, Hungary, Poland, Slovakia and Slovenia.Time series and panel co-integration techniques are used to show that the BS effect works reasonably well in these transition economies during the period 1991:Ql to 2001:Q2.However, productivity growth does not fully translate into price increases due to the structure of CPI indexes.We thus argue that productivity growth will not hinder the ability of the five EU accession candidates to meet the Maastricht criterion on inflation in the medium term.Moreover, the observed appreciation of the CPI-deflated real exchange rate is found to be systematically higher compared to the real appreciation justified by the Balassa-Samuelson effect, particularly in the cases of the Czech Republic and Slovakia.This may be partly explained by the trend appreciation of the tradable-goodsprice-based real exchange rate, increases in non-tradable sector prices due to price liberalisation and demand-side pressures, and the evolution of the nominal exchange rate due to the exchange rate regime and magnitude of capital inflows.
  • Horvath, Julius; Vidovic, Stanislav (2004)
    BOFIT Discussion Papers 3/2004
    This paper uses a large panel data set of monthly frequency final good and service prices in thirty-eight Slovak districts over a five-year period to study price variability and the working of the law of one price.We concentrate on three issues.First, using simple statistical tools, we investigate the range of price differences across Slovak districts.Second, we measure relative price variability across cities and across products.The variability of relative prices in the same district appears to be higher than the variability of prices of the same good across different districts.We identify the factors likely to be responsible for this fact.Third, using benchmarks we investigate the speed of convergence to the absolute law of one price.While we find evidence for absolute convergence, the speed is lower than that found in US cities.The speed of convergence to the relative law of one price is considerably higher.
  • Korhonen, Iikka (2002)
    BOFIT Online 10/2002
    The paper estimates the Monetary Condition Indices (MCIs) for three EU accession countries: the Czech Republic, Poland and Slovakia and assesses the relative importance of interest rates and of the exchange rate in the transmission of monetary policy.The calculated MCI ratios indicate that the exchange rate has surprisingly little influence on the Slovakian economy.The MCI ratio for the Czech Republic is very much comparable to that of small EU countries.Poland seems to be extremely sensitive to changes in the exchange rate.However, estimations appear to be quite sensitive to different specifications, and therefore should be treated with caution. Key words: Monetary policy, Monetary Condition Index, the Czech Republic, Poland, Slovakia