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stability. Are there important differences between the economic outcomes of the two stable regimes? I examine a panel of annual …
Persistent link: https://www.econbiz.de/10011083734
trade. The panel data set used includes bilateral observations for five years spanning 1970 through 1990 for 186 countries …
Persistent link: https://www.econbiz.de/10005666776
We use a panel of annual data for over one hundred developing countries from 1971–92 to characterize currency crashes …
Persistent link: https://www.econbiz.de/10005789137
The results of this paper complement the recent findings of real exchange rates as stationary processes. The standard procedure of applying a battery of unit root tests can be problematic since the tests are sensitive to the specifics of the time-series process. The novelty of the approach we...
Persistent link: https://www.econbiz.de/10005504540
This paper presents a compact derivation of the determinants of changes in the equilibrium real exchange rate (the price index of non-traded goods relative to traded goods) in a small open economy with any number of goods and factors. It is shown that the change in the real exchange rate equals...
Persistent link: https://www.econbiz.de/10005504560
-series and panel methods substantially exaggerate the persistence of real exchange rates because of heterogeneity in the dynamics …
Persistent link: https://www.econbiz.de/10005497901
, may greatly exaggerate the productive capacity of poor countries. The equilibrium prices of an hypothetical world of full … economic integration provide an instructive basis for evaluating the potential share of different countries in world output. …
Persistent link: https://www.econbiz.de/10005656364
We assess the progress made by the profession in understanding real exchange rate behaviour, through a selective and critical but nonetheless expository review of the literature. Our reading of the literature leads us to the main conclusions that purchasing power parity might be viewed as a...
Persistent link: https://www.econbiz.de/10005662032
We propose that analysis of purchasing power parity (PPP) and the law of one price (LOOP) should explicitly take into account the possibility of ‘commodity points’ – thresholds delineating a region of no central tendency among relative prices, possibly due to lack of perfect arbitrage in...
Persistent link: https://www.econbiz.de/10005662194
In this Paper we present an overview of a number of issues relating to the equilibrium exchange rates of the new EU member states from Central and Eastern Europe. In particular, we present a critical overview of the various methods available for calculating equilibrium exchange rates and discuss...
Persistent link: https://www.econbiz.de/10005662370