Nominal Effective Exchange Rate Neutrality: The Case of Macedonia
CEA Journal of Economics ISSN 1857-5269 UDK 33 Volume 7, Issue 1 Skopje, June 2012
11 Pages Posted: 10 Apr 2012 Last revised: 26 Mar 2013
Date Written: April 10, 2012
This paper uses quarterly data on Macedonian nominal effective exchange rate for the time period 1992 to 2009 along with six other variables to investigate the nominal effective exchange rate neutrality. SVAR and Impulse response functions had been used to prove the hypothesis. Empirical evidence in this paper supports the nominal exchange rate neutrality in the case of Macedonia.
Keywords: NEER, SVAR, Impulse response functions
JEL Classification: F31
Suggested Citation: Suggested Citation