CES VŠEM o aktuálních ekonomických problémech

Figure 1: Exchange rate determination
Note: RER – level of the real exchange rate. Source: Égert al., 2005, p.
26, own adaptation.
Under past political regimes, exchange rates oscillated within
a band (if they oscillated at all) and they were reset at the outset
of the transformation process in the NMS countries. In some
countries it may have been close to the PPP value (given
productivity, price and wage levels), while in others below or
above this parity (i.e. between and in the figure 1). This
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