The article examines what causes changes in the value of money in Central and Eastern European countries. It looks at different types of shocks like cost, demand, financial, and monetary ones. The researchers used a special model to analyze the data. They found that real and financial shocks play a big role in exchange rate changes, while monetary shocks are less important. Financial shocks can make exchange rates go up and down more. The countries in the study had similar exchange rate patterns, except for Slovakia. When Slovakia started using the euro, its money was worth more than it should have been, but this eventually balanced out.