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Estimation of the Near Unit Root Model of Real Exchange Rates

McDermott, C. John - 1996

The time-series properties of real exchange rates, on a number of definitions, for 22 industrial countries during 1979-95 were used to re-examine whether PPP holds. It is shown that if real exchange rates reverted to a constant mean slowly, say by five percent a month, then at standard levels of...

Persistent link: https://www.econbiz.de/10014398375

Current Account Rebalancing and Real Exchange Rate Adjustment Between the U.S. and Emerging Asia

Sandri, Damiano - 2011

A reduction in the U.S. current account deficit vis-à-vis emerging Asia involves a shift in demand from U.S. to … emerging Asia tradable goods and a change in international relative prices. This paper quantifies the required adjustment in … Asia. We compare scenarios where both Chinese and other emerging Asian export prices change by the same proportion to the …

Persistent link: https://www.econbiz.de/10011779741

Fiscal policy and the real exchange rate

Chatterjee, Santanu; Mursagulov, Azer - 2012

Government spending on infrastructure has recently increased sharply in many emerging-market economies. This paper examines the mechanism through which public infrastructure spending affects the dynamics of the real exchange rate. Using a two-sector dependent open economy model with...