Tradiční teorie měnového kurzu v podmínkách ekonomické transformace
Traditional Exchange Rate Theories under the Conditions of Economic Transition

Summary/Abstract: The paper contains a specific exchange rate model in the long run for the transi-tive economies where the key postulates of the established models such as Purchasing Power Parity, Uncovered Interest Rate Parity Condition and Mone-tary Approach seem to be slightly modified. The model is based on so called “convergence gap” which is determined by number of real factors both quanti-tative and qualitative. Under the conditions of transitive economies the exchange rates are systematically deviated from the parity. The deviation is a function of the convergence gap. The exchange rate of transitive economy is therefore function of convergence gap, domestic price level and foreign price level. Since the convergence gap generally reflects the institutional structure of economy, the exchange rate is also function of legal and institutional aspects. The theoretical consequences and practical implications of this definition are discussed in the presented article

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