Search Results - subject:"Exchange rate misalignment"

Asymmetric Adjustment and Nonlinear Dynamics in Real Exchange Rates

Leon, H. L.; Najarian, Serineh - International Monetary Fund (IMF) - 2003

This paper examines whether deviations from PPP are stationary in the presence of nonlinearity, and whether the adjustment toward PPP is symmetric from above and below. Using alternative nonlinear models, our results support mean reversion and asymmetric adjustment dynamics. We find differences...

Persistent link: https://www.econbiz.de/10005769039

Trade Liberalization and Real Exchange Rate Movement

Li, Xiangming - International Monetary Fund (IMF) - 2003

Although theory suggests that the real exchange rate should depreciate after a credible trade liberalization but could appreciate temporarily with a noncredible one, little empirical evidence exists. Unlike existing studies that use either indirect tests or unreliable openness measures, this...

Persistent link: https://www.econbiz.de/10005769042

The Equilibrium Real Exchange Rate of the Malagasy Franc; Estimation and Assessment

Cady, John - International Monetary Fund (IMF) - 2003

Employing cointegration techniques, the long-run determinants of Madagascar's real exchange rate are examined from a stock-flow perspective. The long-run behavior of the real effective exchange rate is explained by the net foreign asset position and factors affecting trade flows. An index of the...

Persistent link: https://www.econbiz.de/10005825649

Exchange Rate Policy and Debt Crises in Emerging Economies

Montiel, Peter; Jahjah, Samir - International Monetary Fund (IMF) - 2003

We explore a model intended to capture the interaction between exchange rate policy, fiscal policy, and outright default on foreign-currency denominated debt. We examine how the exchange rate affects the supply of short-term debt facing the government. We show that under a credible hard peg...

Persistent link: https://www.econbiz.de/10005826111

The Dynamics of Real Interest Rates, Real Exchange Rates and the Balance of Payments in China: 1980-2002

Jin, Zhongxia - International Monetary Fund (IMF) - 2003

Based on China's experience between 1980 and 2002, a cointegrated vector autoregression model was established to explore the relationships among real interest rates, real exchange rates and balance of payments in China. Taking into account institutional changes, the empirical study shows that...

Persistent link: https://www.econbiz.de/10005263720

Exchange Rate Pass-Through in Turkey

Rossi, Marco; Leigh, Daniel - International Monetary Fund (IMF) - 2002

In light of the strong correlation between exchange rate movements and domestic prices in Turkey, it is important to assess the impact of the exchange rate on domestic prices, in particular as Turkey moves to an inflation targeting regime. This paper uses a recursive vector autoregression model...

Persistent link: https://www.econbiz.de/10005599531

Aid and Fiscal Management

Lane, Timothy D.; Bulir, Ales - International Monetary Fund (IMF) - 2002

This paper focuses on the macroeconomic aspects of fiscal management in aid-receiving countries. Despite the declining share of aid in budgets of donor countries, aid continues to play an important role in many developing countries. The paper first discusses the implications of aid in the...

Persistent link: https://www.econbiz.de/10005826310

Exchange rate misalignment, exchange rate volatility and economic growth : an analysis for the Brazilian economy

Vieira, Flavio Vilela; Damasceno, Aderbal Oliveira - In: Brazilian journal of political economy 36 (2016) 4, pp. 704-725

Persistent link: https://www.econbiz.de/10011785789

A panel data investigation of real exchange rate misalignment and growth

MacDonald, Ronald; Vieira, Flávio - 2010

The paper investigates the role of real exchange rate misalignment on long-run growth for a set of ninety countries … this is then used to construct measures of real exchange rate misalignment. We also provide an alternative set of estimates … of real exchange rate misalignment using panel cointegration methods. The variables used in our real exchange rate models …

Persistent link: https://www.econbiz.de/10010270496

Is the Chinese currency substantially misaligned to warrant further appreciation?

Qin, Duo; He, Xinhua - 2010

This study provides quarterly time-series estimates of the misalignment in the REER of the Renminbi (RMB). The estimation is based on a commonly used economic approach, but with a wider and more up-to-date coverage of data and a more extensive use of econometric modelling techniques. Our...

Persistent link: https://www.econbiz.de/10010299940