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"Washington Consensus" (WC) view holds that real exchange rate misalignment implies macroeconomic imbalances that are themselves … of the role of misalignment in growth are observationally equivalent for the main growth regressions he reports. There is … an identification problem: Determinants of misalignment are also likely to be independent drivers of growth, and these …
Persistent link: https://www.econbiz.de/10008519476
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This paper analyzes competitiveness in the Baltics in the run-up to European Union accession. Several factors appear to have driven movements in equilibrium real exchange rates in the Baltics since the start of the transition process. In the earlier years of transition, price liberalization,...
Persistent link: https://www.econbiz.de/10005591344
This Selected Issues Paper and Statistical Appendix for Niger are discussed. The Nigerien economic outlook has been improving since 1999. After a long period of decline in per capita income, growth accelerated through 2007, attaining an annual average of 4 percent, or about 1 percent in per...
Persistent link: https://www.econbiz.de/10011245770
sense, it may not be useful as an indicator of exchange rate misalignment. While more elaborate models of fundamentals might …
Persistent link: https://www.econbiz.de/10005826261
This paper computes Malawi's equilibrium real exchange rate as a function of its fundamentals as derived from economic theory. It finds evidence in favor of the equilibrium approach to exchange rate determination, with several variables (particularly government consumption and real per capita...
Persistent link: https://www.econbiz.de/10005264148
using Johansen cointegration methods into transitory and permanent components, with the latter used to estimate the …
Persistent link: https://www.econbiz.de/10005769018
The purpose of this paper is to estimate the equilibrium real exchange rate and derive the degree of misalignment for … this debate. An extensive analysis of the degree of misalignment of the five currencies is undertaken on the basis of …
Persistent link: https://www.econbiz.de/10005616891