TY - BOOK ID - 84541636 TI - Interpreting Real Exchange Rate Movements in Transition Countries. AU - International Monetary Fund. AU - International Monetary Fund PY - 2001 SN - 1462345980 1452720002 1281331376 1451894546 9786613778772 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Foreign Exchange KW - Production and Operations Management KW - International Finance: General KW - Information and Market Efficiency KW - Event Studies KW - International Financial Markets KW - Socialist Institutions and Their Transitions: Financial Economics KW - Macroeconomics: Production KW - Currency KW - Foreign exchange KW - Macroeconomics KW - Real exchange rates KW - Productivity KW - Real effective exchange rates KW - Exchange rates KW - Industrial productivity KW - Production KW - Russian Federation UR - https://www.unicat.be/uniCat?func=search&query=sysid:84541636 AB - Several transition countries have experienced strong real exchange rate appreciations. This paper tests the hypothesis that these appreciations reflect underlying productivity gains in the tradable sector. Using panel data over the period 1993-98, the results show clear evidence of productivity-driven exchange rate movements in the central and eastern European and Baltic countries. Transition countries, particularly the EU accession countries that have begun to catch up, can expect to experience further productivity-driven real exchange rate appreciations. Evidence from a large cross-section of non-transition countries indicates that catching up by one percent will be associated with a 0.4 percent real appreciation. ER -