L'objet de cet article est d'utiliser les developpements recents de l'econometrie des panels dynamiques non stationnaires afin d'examiner la robustesse du concept de PPA pour un echantillon de 73 pays developpes et en developpement. Nos investigations revelent que la forme forte de la PPA est...

This article aims at analyzing the problem of real exchange rate appreciation and competitiveness in the EU's ultra-peripheral regions by the case study of La Reunion Island. After describing economic characteristics of this French overseas department, such as the large deficit of the trade...

Undervaluation of the currency is generally believed to affect growth through two main transmission channels: the “capital accumulation channel” and the “total factor productivity (TFP) growth channel”. This paper carries out the first empirical investigation on the TFP growth channel....

This paper investigates possible asymmetries in the reaction of export and import prices to changes in the exchange rate for 4 advanced countries between the 1981q1 and2011q2 period. This exercise is conducted using an asymmetric cointegrating autoregressive distributed lag (ARDL) model, with...

In recent years, an ample literature has emerged on the evolution of global inequality during the last two decades. A few stylized facts emerge. If one weights countries by their population, then inequality across countries has declined. However, if one treats countries equally – as in the...

An influential school of thought views the current international monetary and financial system as Bretton Woods reborn. Today, like 40 years ago, the international monetary system is composed of a core, which has the exorbitant privilege of issuing the currency used as international reserves,...

This paper suggests a new methodology which allows to show whether worldwide growth has been favourable to developing economies, and a new measure to assess international income mobility across countries. The empirical illustration considers a panel of 123 countries observed over the years...

This paper shows empirically that China's trade balance is sensitive to fluctuations in the Renminbi real effective exchange rate. However, the current size of the 'trade surplus is such that exchange rate policy, alone, will probably not be able to address the imbalance. The reduction in the...

The “impossible trinity” refers to the impossibility of the simultaneous presence of a fixed exchange rate regime, uncovered interest parity and the Central Bank?s control over the money supply. I apply this to Krugman?s (1979) balance of payments crisis model, where he argued that there is...

This paper studies the impact of a broadening of the SDR basket to the Chinese currency on the composition and volatility of the basket. Although, in the past, RMB inclusion would have had negligible impact due to its limited weight, a much more significant impact can be expected in the next...