scholarly journals Measuring The Real Exchange Rate Misalignment Of Ethiopia: A Dynamic Ols Approach

2008 ◽  
Vol 15 (2) ◽  
Author(s):  
TM Tensay
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
The Real ◽  
Dynamic Ols ◽  
Exchange Rate Misalignment

The Effects of Domestic Policies and External Factors on the Real Exchange Rate and Economic Performance in Sub-Saharan Africa

1996 ◽  
Vol 40 (1) ◽  
pp. 92-103
Author(s):  
Jonathan Ikoba ◽  
Akorlie A. Nyatepe-Coo ◽  
Oluwole Owoye
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
External Factors ◽  
Sub Saharan Africa ◽  
Budget Balance ◽  
African Countries ◽  
The Real ◽  
Exchange Rate Misalignment ◽  
Sub Saharan ◽  
Exchange Rate Changes

This paper examines the relative contributions of domestic and external factors to real exchange rate changes in six sub-Sahara African countries during the period 1960–91. A vector autoregression (VAR) model is used to analyze the interrelationships between the current account, the budget balance and the real exchange rate. The results suggest that external factors such as the terms of trade and foreign income were as important as domestic policy mistakes in causing real exchange rate misalignment in sub-Saharan Africa.

scholarly journals Real Exchange Rate Misalignment in Jordan: The Permanent Equilibrium Approach

2017 ◽  
Vol 9 (3) ◽  
pp. 29
Author(s):  
Noura Abu Asab
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Rate System ◽  
The Real ◽  
Economic Fundamentals ◽  
Long Run ◽  
The Us ◽  
Exchange Rate Misalignment ◽  
Exchange Rate System

This study attempts to measure the real exchange rate misalignment in Jordan from 1980 to 2014. We examine the role of adopting the pegged exchange rate system to the US in 1995 in limiting/increasing misalignment. Applying the Johansen approach, a cointegrating relationship is found between the real exchange rate and a number of economic fundamentals that influence the long-run real exchange rate. Over a long examined period of exchange rate fixity, the real exchange rate is kept depreciated except after 2006-2008 over which the appreciation of the real exchange rate is noted. However, after 2011 misalignment receded as the real exchange rate matched the equilibrium real exchange rate. An attempt is also made to model the nexus between the growth of per capita income and misalignment. The exchange rate misalignment is found to significantly decrease the economic growth. 

scholarly journals Real exchange rate misalignment and economic performance in Namibia

2013 ◽  
Vol 10 (3) ◽  
pp. 440-455
Author(s):  
Joel Hinaunye Eita ◽  
Andre C. Jordaan
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Economic Performance ◽  
Negative Impact ◽  
Exchange Rate Policy ◽  
Promotion Strategy ◽  
The Real ◽  
Exchange Rate Misalignment ◽  
And Performance ◽  
Trade Promotion

This paper estimates the real exchange rate misalignment and investigates its impact on economic performance and competitiveness of Namibia for the period 1970 to 2011 using cointegrated vector autoregression methods. The results show that there were periods of overvaluation and undervaluation of the real exchange rate. The analysis reveals that misalignment has a negative impact on the competitiveness and performance of the economy. Maintaining the real exchange rate out of equilibrium reduces economic performance and competitiveness. This suggests that policy makers should monitor the real exchange rate regularly and make the exchange rate policy part of trade promotion strategy

scholarly journals PENGARUH MISALIGNMENT NILAI TUKAR TERHADAP KEBIJAKAN SAFEGUARDS DI ASEAN-5

2015 ◽  
Vol 18 (1) ◽  
pp. 61-84
Author(s):  
Dila Vindayani ◽  
Dedi Budiman Hakim ◽  
Alla Asmara
Keyword(s):  
Logistic Regression ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Fixed Effects ◽  
Tariff Policy ◽  
Dynamic Ols ◽  
Exchange Rate Misalignment ◽  
Specific Country

The purposes of this study are to analyze the occurence of exchange rate misalignment and its effect on non-tariff policy in ASEAN-5. We use Panel Dynamic OLS to estimate the equilibrium real exchange rate, while for determining the opportunities of the Non-Tariff Measures (NTMs) such as safeguards measures;we use Conditional Fixed-Effects Logistic Regression. The results shows that the magnitude of exchange rate misalignment tends to be large when specific country has a domestic turmoil. In addition, undervalued currrency of exporting country will increase the chances of safeguards measures enforcement from partner countries.

scholarly journals Exchange rate misalignment, capital accumulation and income distribution: Theory and evidence from the case of Brazil

2013 ◽  
Vol 60 (3) ◽  
pp. 381-396 ◽  
Author(s):  
José Oreiro ◽  
Eliane Araujo
Keyword(s):  
Exchange Rate ◽  
Income Distribution ◽  
Real Exchange Rate ◽  
Open Economy ◽  
Capital Accumulation ◽  
Quadratic Function ◽  
The Real ◽  
Direct Corollary ◽  
Exchange Rate Misalignment ◽  
Investment Function

This article analyzes the relationship between economic growth, income distribution and real exchange rate within the neo-Kaleckian literature, through the construction of a nonlinear macrodynamic model for an open economy in which investment in fixed capital is assumed to be a quadratic function of the real exchange rate. The model demonstrates that the prevailing regime of accumulation in a given economy depends on the type of currency misalignment, so if the real exchange rate is overvalued, then the regime of accumulation will be profit-led, but if the exchange rate is undervalued, then the accumulation regime is wage-led. Subsequently, the adherence of the theoretical model to data is tested for Brazil in the period 1994/Q3-2008/Q4. The econometric results are consistent with the theoretical non-linear specification of the investment function used in the model, so that we can define the existence of a real exchange rate that maximizes the rate of capital accumulation for the Brazilian economy. From the estimate of this optimal rate we show that the real exchange rate is overvalued in 1994/Q3- 2001/Q1 and 2005/Q4-2008/Q4 and undervalued in the period 2001/Q2-2005/Q3. As a direct corollary of this result, it follows that the prevailing regime of accumulation in the Brazilian economy after the last quarter of 2005 is profit-led.

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