Real And Monetary Determinants Of Real Exchange Rate Behaviorr PDF Download
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Author | : Sebastian Edwards |
Publisher | : |
Total Pages | : 64 |
Release | : 1988 |
Genre | : Foreign exchange |
ISBN | : |
Download Real and Monetary Determinants of Real Exchange Rate Behavior Book in PDF, ePub and Kindle
This paper develops a dynamic model of real exchange rate behavior in developing countries. A three goods economy (exportables, importables and nontradables) is considered. Residents of this country hold domestic and foreign assets, and there is a dual exchange rate regime. There is a government that consumes importables and nontradables. A distinction is made between equilibrium and disequilibrium movements of the RER. The determinants of real exchange rate misalignment are studied with emphasis placed on the role of devaluations and balance of payments crisis. The implications of the model are tested using data for 12 developing countries. The results obtained are generally favorable for the model. The issue of RER stationarity is also analyzed.
Author | : |
Publisher | : |
Total Pages | : |
Release | : 1988 |
Genre | : |
ISBN | : |
Download Real and Monetary Determinants of Real Exchange Rate Behavior Book in PDF, ePub and Kindle
Author | : Jerome L. Stein |
Publisher | : Oxford University Press |
Total Pages | : 276 |
Release | : 1997 |
Genre | : Business & Economics |
ISBN | : 9780198293064 |
Download Fundamental Determinants of Exchange Rates Book in PDF, ePub and Kindle
"This book greatly enhances our understanding of the behavior of real exchange rates. It provides an elegant model based on a solid theoretical foundation that links real exchange rates to their fundamental economic determinants and takes proper account of stock and flow considerations. The authors provide a masterful account of how changes in productivity and thrift affect the real exchange rate, and show that the long-run impact depends crucially on whether the change reflects the former fundamental (investment) or the latter (consumption). The empirical implementation uses state-of-the-art cointegration and error correction methodologies that are eminently well suited to capture the short-run adjustment of the real exchange rate to its medium- to long-run equilibrium value. The empirical results are extremely encouraging, as the economic fundamentals identified by the authors can explain a substantial part of the movement in the real exchange rate of a number of countries."--Peter Clark, International Monetary Fund
Author | : Mr.Hamid Faruqee |
Publisher | : International Monetary Fund |
Total Pages | : 40 |
Release | : 1994-08-01 |
Genre | : Business & Economics |
ISBN | : 1451851359 |
Download Long-Run Determinants of the Real Exchange Rate Book in PDF, ePub and Kindle
This paper examines the long-run determinants of the real exchange rate from a stock-flow perspective. The empirical analysis estimates a long-run relationship between the real exchange rate, net foreign assets and other factors affecting trade flows. Using postwar data for the United States and Japan, cointegration analysis supports the finding that the structural factors underlying each country’s net trade and net foreign asset positions determine the long-run path for the real value of the dollar and the yen. The empirical analysis also provides estimates for the underlying stochastic trend in each real exchange rate series.
Author | : Mr.Gian Milesi-Ferretti |
Publisher | : International Monetary Fund |
Total Pages | : 38 |
Release | : 1994-02-01 |
Genre | : Business & Economics |
ISBN | : 1451922515 |
Download Real Exchange Rates and the Prices of Nontradable Goods Book in PDF, ePub and Kindle
This paper attempts to provide a perspective on real exchange rate developments following the inception of the EMS. The focus is on structural determinants of real exchange rates, notably the behavior of tradables and nontradable prices and productivity. It is found that changes in the relative price of tradable goods in terms of nontradables account for a sizable fraction of real exchange rate dynamics during the EMS period. Sectoral productivity growth differential help explain the behavior of the relative price of tradable goods, especially in the long run. There is also some evidence that the EMS has extended on relative price behavior.
Author | : John E. Floyd |
Publisher | : Springer Science & Business Media |
Total Pages | : 406 |
Release | : 2009-12-04 |
Genre | : Business & Economics |
ISBN | : 3642102808 |
Download Interest Rates, Exchange Rates and World Monetary Policy Book in PDF, ePub and Kindle
A careful basic theoretical and econometric analysis of the factors determining the real exchange rates of Canada, the U.K., Japan, France and Germany with respect to the United States is conducted. The resulting conclusion is that real exchange rates are almost entirely determined by real factors relating to growth and technology such as oil and commodity prices, international allocations of world investment across countries, and underlying terms of trade changes. Unanticipated money supply shocks, calculated in five alternative ways have virtually no effects. A Blanchard-Quah VAR analysis also indicates that the effects of real shocks predominate over monetary shocks by a wide margin. The implications of these facts for the conduct of monetary policy in countries outside the U.S. are then explored leading to the conclusion that all countries, to avoid exchange rate overshooting, have tended to automatically follow the same monetary policy as the United States. The history of world monetary policy is reviewed along with the determination of real exchange rates within the Euro Area.
Author | : Mr.Ghiath Shabsigh |
Publisher | : International Monetary Fund |
Total Pages | : 25 |
Release | : 1999-03-01 |
Genre | : Business & Economics |
ISBN | : 1451845952 |
Download Real Exchange Rate Behavior and Economic Growth Book in PDF, ePub and Kindle
This paper examines the effect of the real exchange rate misalignment (RERMIS) on the collective economic growth of Egypt, Jordan, Morocco, and Tunisia. The paper constructs three measures of exchange rate misalignment based on purchasing power parity; a black market exchange rate; and a structured model. The empirical investigation confirmed the adverse effect of RERMIS on growth, using all measures of RERMIS, as predicted by endogenous growth models. The results also highlighted the role of other factors; specifically, capital growth and population have the theoretical signs predicted by the Solow growth model and are statistically significant.
Author | : Mr.Ronald MacDonald |
Publisher | : International Monetary Fund |
Total Pages | : 54 |
Release | : 1997-02-01 |
Genre | : Business & Economics |
ISBN | : 1451921675 |
Download What Determines Real Exchange Rates? The Long and Short of it Book in PDF, ePub and Kindle
This paper presents a reduced-form model of the real exchange rate. Using multilateral cointegration methods, the model is implemented for the real effective exchange rates of the dollar, the mark, and the yen, over the period 1974-1993. In contrast to much other research using real exchange rates, there is evidence of significant and sensible long-run relationships for a simplified version as well as for the full version of the model. The estimated long-run relationships are used to produce dynamic equations, which outperform a random walk and produce sensible dynamic patterns in the context of an impulse response analysis.
Author | : |
Publisher | : |
Total Pages | : 25 |
Release | : 1988 |
Genre | : |
ISBN | : |
Download Real and Monetary Determinants of Real Exchange Rate Behaviorr Book in PDF, ePub and Kindle
Author | : Rudiger Dornbusch |
Publisher | : |
Total Pages | : 70 |
Release | : 1988 |
Genre | : Foreign exchange |
ISBN | : |
Download Real Exchange Rates and Macroeconomics Book in PDF, ePub and Kindle
This paper discusses exchange rate issues in advanced and in developing countries. For the determination of exchange rates among industrialized countries the key question is the following: What is the right framework -- the monetary approach, the equilibrium approach, the new classical approach or the macroeconomic model in the tradition of Mundell-Fleming. To shed light on that question two empirical problems are considered: What is known about the behavior of real exchange rates and how well do alternative models explain the relation among interest rates, expected depreciation and actual depreciation. The second half of the paper discusses real exchange rates in developing countries. This strand of literature has become important in the context of adjustment programs. We focus on the relation between real exchange rates and the profitability of capital. The model highlights the sharp discrepancy between the mobility of capital (even physical capital, in the long run) and the immobility of labor.