Presentation on theme: "Exchange rate and trade dynamics Peter BEKX European Commission Gen è ve, 27 March 2012."— Presentation transcript:
Exchange rate and trade dynamics Peter BEKX European Commission Gen è ve, 27 March 2012
Outline 1.Global imbalances pose an increasing threat to global economic stability, again 2.Empirical studies show that exchange rates do matter 3.Experiences in advanced and emerging Europe show that policy changes are needed to address imbalances 4.Conclusions
Real effective exchange rates and catching-up Source: IMF IFS and World Bank GDF
Emerging Europe: improving export performance while facing appreciation Source: ECFIN Economic Paper no 366, March 2009
Conclusions Exchange rates do matter And should form part of the solution But policy changes in other fields are as much part of the solution Economic integration can support the necessary structural reforms
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