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Drivers of Peru's Equilibrium Real Exchange Rate : Is the Nuevo Sol a Commodity Currency?

Tashu, Melesse Minale - 2015

This paper tests the hypothesis of ‘commodity currency' on the nuevo sol and, more generally, identifies the drivers of Peru's equilibrium real exchange rate using a cointegration analysis. The results show that export commodity prices do not have a statistically significant impact on Peru's...

Persistent link: https://www.econbiz.de/10013026922

Why are Countries' Asset Portfolios Exposed to Nominal Exchange Rates?

Barrett, Philip - 2018

Most countries hold large gross asset positions, lending in domestic currency and borrowingin foreign. Thus, their balance sheets are exposed to nominal exchange rates. We argue thatwhen asset markets are incomplete, nominal exchange rate exposure allows countries topartially insure against...

Persistent link: https://www.econbiz.de/10012929919

Global Value Chains and the Exchange Rate Elasticity of Exports

Ahmed Hannan, Swarnali - 2016

This paper analyzes how the formation of Global Value Chains (GVCs) has affected the exchange rate elasticity of exports. Using a panel framework covering 46 countries over the period 1996-2012, we first find some suggestive evidence that the elasticity of real manufacturing exports to the Real...

Persistent link: https://www.econbiz.de/10012999740

Real Effective Exchange Rate and the Constant Elasticity of Substitution Assumption

Vamvakidis, Athanasios - 2021

The real effective exchange rate is an aggregation of several bilateral real exchange rates with respect to other countries. The aggregation is usually done under the assumption of constant elasticity of substitution (CES) between products from different countries. We investigate the validity of...

Persistent link: https://www.econbiz.de/10013212031

Commodity Prices and Exchange Rate Volatility : Lessons from South Africa's Capital Account Liberalization

Arezki, Rabah - 2012

We examine the relationship between South African Rand and gold price volatility using monthly data for the period 1980 … volatility but the causality runs the other way around for the post-liberalization period. These findings suggest that gold price … volatility plays a key role in explaining both the excessive exchange rate volatility and current disproportionate share of …

Persistent link: https://www.econbiz.de/10013098635

Real Exchange Rate Appreciation in Emerging Markets : Can Fiscal Policy Help?

Moreno Badía, Marialuz - 2014

A number of emerging markets have experienced substantial real exchange rate appreciationin recent years, generating concerns about competitiveness and prompting policymakers torespond with a combination of mitigating policies. This paper shows that fiscal policy can play a role in alleviating...

Persistent link: https://www.econbiz.de/10013059856

Exchange Rates and Trade : A Disconnect?

Leigh, Daniel - 2017

We examine the stability and strength of the relationship between exchange rates and trade over time using three alternative approaches, mitigating the endogeneity of the relation. We find that both exchange rate pass-through and the price elasticity of trade volumes are largely stable over...

Persistent link: https://www.econbiz.de/10012956490

Competitiveness in Bulgaria : An Assessment of the Real Effective Exchange Rate

Chobanov, Dimitar - 2007

, terms of trade, world real interest rates, gross savings, and foreign direct investment. The model also shows that there is …

Persistent link: https://www.econbiz.de/10012778609

To Smooth or Not to Smooth - the Impact of Grants and Remittances on the Equilibrium Real Exchange Rate in Jordan

Petri, Martin - 2006

This paper estimates the effect of grants and workers' remittances on Jordan's long-term equilibrium real exchange rate. We estimate an equilibrium path for the Jordanian real exchange rate using the Johansen cointegration methodology over the period 1964 to 2005. Controlling for other...

Persistent link: https://www.econbiz.de/10012779036

How Much Should I Hold? Reserve Adequacy in Emerging Markets and Small Islands

Mwase, Nkunde - 2012

This paper investigates the drivers of reserves in emerging markets (EMs) and small island (SIs) and develops an operational metric for estimating reserves in SIs taking into account their unique characteristics. It uses quantile regression techniques to allow the estimated factors driving...

Persistent link: https://www.econbiz.de/10013098602