Real exchange rate volatility in Central Europe impacts macroeconomic performance significantly.
The article examines how unexpected changes in exchange rates impact the economies of Central European countries. Using a method called VAR, the researchers studied how fluctuations in real exchange rates affect key economic indicators. They found that economic crises can alter the impact of exchange rate changes on the economy. By analyzing these relationships, the study provides valuable insights for policymakers on how to manage exchange rate fluctuations.