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Estimates of Fundamental Real Exchange Rates for the Five EU Pre-Accession Countries
Šmídková, Kateřina ; Barrell, Ray ; Holland, Dawn
The work employs the concept of the fundamental real exchange rate (FRER), taking into account the specific features of countries in the advanced stage of transition. The FRER model approximates the integration gain with the impact of foreign direct investment on trade and allows for larger current account deficits if external debt is below a safety limit.
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