This paper describes an empirical model of country risk premiums and their determinants, relying on recent theories of balance sheet effects. We approach the latter by introducing a novel approach to country risk premiums that assumes that nominal exchange rates can move away from or towards...

This article empirically tests the impact of exchange rate depreciation on sectoral performance proxied by investment or, alternatively, sales. It measures the balance sheet and the competitiveness effect in a country that records very high levels of liability euroisation. Panel data methodology...

We explore the validity of the purchasing power parity (PPP) hypothesis in the case of Croatia. Two cointegration methods were used: Johansen cointegration that assumes symmetry and threshold cointegration that allows for asymmetric adjustment in the short run. The results suggest that in the...