Estimation of a Behavioral Equilibrium Exchange Rate Model for Ghana

The paper estimates a behavioral equilibrium exchange rate model for Ghana. Regression results show that most of the REER's long-run behavior can be explained by real GDP growth, real interest rate differentials (both relative to trading-partner countries), and the real world prices of Ghana's main export commodities. On the basis of these fundamentals, the REER in late 2006 was found to be very close to its estimated equilibrium level. The results also suggest, that deviations from the equilibrium path are eliminated within two to three years.

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Year of publication:	2007-07-01
Authors:	Loukoianova, Elena ; Iossifov, Plamen
Institutions:	International Monetary Fund (IMF)
Subject:	Export prices \| Commodity prices \| Economic models \| reer \| exchange rate \| real effective exchange rate \| effective exchange rate \| real exchange rate \| export commodities \| exchange rates \| equilibrium exchange rate \| currency units \| nominal effective exchange rate \| foreign exchange \| export market shares \| export market \| nominal exchange rate \| real exchange rates \| export growth \| commodity exports \| export performance \| export price \| exporting country \| current exchange rates \| exchange rate misalignment \| nominal exchange rates \| current account balance \| capital flows \| export base \| exchange rate appreciation \| exchange rate management \| export price index \| commodity export \| countries ? exports

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Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	The text is part of a series IMF Working Papers Number 07/155 2 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005605413