Béreau, Sophie; Villavicencio, Antonia Lopez; Mignon, … - Centre d'études prospectives et d'informations … - 2009
cointegration techniques, we calculate real exchange rate (RER) misalignments as deviations of actual RERs from their equilibrium … economic growth, real exchange rate undervaluations significantly enhance it. This result indicates that undervaluations may … drive the exchange rate to a level that encourages exports and promotes growth. …