Economic Themes (2010) 48 (1) 2, 13-27
Dragoslav Kitanović, Miloš Krstić
Abstract: The relation between exchange rate and stability and dynamics of real economy has in the past period and especially today occupied the attention of economic theoreticians. This is because different levels of economy marketability, from developed ones to the economies in transition, demand a very subtle monetary policy, which ensures dynamic economic growth. In the first part of this paper, there is a short review of epistemological aspect of this problem so that in the second part, we can proceed to the analysis of positive and negative ranges of the actual policy of the rate of dinar to the economic growth in Serbia.
Keywords: economic growth; exchange rate; purchase power parity; relative prices; currency appreciation; floating rate
THE IMPACT OF FOREIGN EXCHANGE RATE ON THE ECONOMIC GROWTH OF SERBIA
Dragoslav Kitanović, Miloš Krstić
Abstract: The relation between exchange rate and stability and dynamics of real economy has in the past period and especially today occupied the attention of economic theoreticians. This is because different levels of economy marketability, from developed ones to the economies in transition, demand a very subtle monetary policy, which ensures dynamic economic growth. In the first part of this paper, there is a short review of epistemological aspect of this problem so that in the second part, we can proceed to the analysis of positive and negative ranges of the actual policy of the rate of dinar to the economic growth in Serbia.
Keywords: economic growth; exchange rate; purchase power parity; relative prices; currency appreciation; floating rate
