Research Detail
| 2024/02/28 / Erste Group Research |
Romania Special | Equilibrium exchange rate We apply the most common approaches for estimating the equilibrium exchange rate: Behavioral Equilibrium Exchange Rate (BEER) and Purchasing Power Parity (PPP). We conclude that appreciation of the real exchange rate over the past 1.5 years in Romania was primarily driven by the energy crisis and higher unit labor costs. Higher FDIs and investments and, recently, lower risk aversion supported the appreciation, albeit to a lesser extent. |
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General information
| Author | Erste Group Research |
| Date | 2024/02/28 |
| Language |  |
| Product name | CEE Economies Special Report |
| Topic in focus | FX, Macro/ Fixed income |
| Economy in focus | Romania |
| Currency in focus | Romanian Leu |
| Sector in focus | - |
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