<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper aims to evaluate the relationship of real exchange rates of domestic currencies with macroeconomic variables in Macedonia, Croatia and Serbia by using econometric approaches. Macedonia is characterized by the regime of a fixed exchange rate, Croatia is characterized by a managed floating exchange rate, while Serbia is characterized by the regime of a floating exchange rate. The choice of an exchange rate regime is an important aspect of economic management, in order to ensure competitiveness, macroeconomic stability and development. Evaluation of the relationship of Croatian, Macedonian and Serbian real exchange rates is performed by employing the consistent methodology of vector error correction modelling (VECM). According to the results of the analyses of the real exchange rates on the long run, the selected independent variables have long-run causality in case of the real exchange rate of Croatian Kuna. In case of Macedonian Denar and Serbian Dinar the VECM is inappropriate.</p></abstract>

This paper aims to evaluate the relationship of real exchange rates of domestic currencies with macroeconomic variables in Macedonia, Croatia and Serbia by using econometric approaches. Macedonia is characterized by the regime of a fixed exchange rate, Croatia is characterized by a managed floating exchange rate, while Serbia is characterized by the regime of a floating exchange rate. The choice of an exchange rate regime is an important aspect of economic management, in order to ensure competitiveness, macroeconomic stability and development. Evaluation of the relationship of Croatian, Macedonian and Serbian real exchange rates is performed by employing the consistent methodology of vector error correction modelling (VECM). According to the results of the analyses of the real exchange rates on the long run, the selected independent variables have long-run causality in case of the real exchange rate of Croatian Kuna. In case of Macedonian Denar and Serbian Dinar the VECM is inappropriate.

Identifying the determinants that cause the value movements of currencies Denar, Kuna and Dinar

Association of Young Analysts and Researchers, Republic of Macedonia

Croatian Review of Economic, Business and Social Statistics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

This paper aims to evaluate the relationship of real exchange rates of domestic currencies with macroeconomic variables in Macedonia, Croatia and Serbia by...

Identifying the determinants that cause the value movements of currencies Denar, Kuna and Dinar

Published Online: Dec 14, 2018

Page range: 78 - 85

Received: Sep 10, 2018

Accepted: Nov 16, 2018

DOI: https://doi.org/10.2478/crebss-2018-0015

Keywords
fiat currency, exchange rate, real exchange rate, vector error correction model

© 2018 Vesna Bucevska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Identifying the determinants that cause the value movements of currencies Denar, Kuna and Dinar

Published Online: Dec 14, 2018

Page range: 78 - 85

Received: Sep 10, 2018

Accepted: Nov 16, 2018

DOI: https://doi.org/10.2478/crebss-2018-0015

Keywordsfiat currency, exchange rate, real exchange rate, vector error correction model

© 2018 Vesna Bucevska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
fiat currency, exchange rate, real exchange rate, vector error correction model