This paper establishes a simple theory-based real exchange rate (RER) Misalignment Index for countries around the world from 1950-2014, and shows that South Africa's RER has been undervalued over the last decade. For the most recent year of 2014, depending on the proxy for productivity, it is...

This paper aims to address the relatively limited attention given to the examination of exchange rate misalignment uncertainty in the specific context of South Africa. By specifically focusing on exchange rate misalignment uncertainty, this study fills a crucial gap in the literature and gains a...

The paper argues that persistent current account surpluses and increasing foreign currency-denominated asset positions constitute long-term appreciation expectations on yuan and yen, which have made China and Japan vulnerable to U.S. interest rate cuts and appreciation expectation shocks. For...