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This paper examines the extent of misalignment of the real effective exchange rate (REER) of South African rand. With …, external openness, capital flows and government expenditure. The MSM correctly captures exchange rate misalignment as distinct …
Persistent link: https://www.econbiz.de/10012440315
The optimal currency for a country is an important topic. While it is difficult to identify the best option overall, for all stakeholders and including political considerations, it is easier to answer the more limited question of the title: Which currency is best for business in a small country?...
Persistent link: https://www.econbiz.de/10011695417
Evidence in favor of the monetary model of exchange rate determination for the South African Rand is, at best, mixed. A co-integrating relationship between the nominal exchange rate and monetary fundamentals forms the basis of the monetary model. With the econometric literature suggesting that...
Persistent link: https://www.econbiz.de/10009770376
This paper examines the impact of real effective exchange rate misalignment on economic growth in Nigeria using an … exchange rate regime is characterized by a relatively lower real exchange rate misalignment over time compared with the fixed … exchange rate regime. The GMM estimate reveals that real exchange rate misalignment has negative but significant impact on …
Persistent link: https://www.econbiz.de/10011460320
RER misalignment under different exchange rate policies considered, model results indicated that the naira was overvalued …
Persistent link: https://www.econbiz.de/10011843508
Persistent link: https://www.econbiz.de/10011775321
associated with the political instability in Malaysia in recent years, examining the relationship between exchange rate and money … changes on money demand in Malaysia using both linear and nonlinear ARDL approaches. The findings reveal that the money demand …
Persistent link: https://www.econbiz.de/10013459224
Tiny changes in the American monetary policy can have dramatic effects on the rest of the world because of dollar's double role of national and international currency. This is the Triffin dilemma. The paper shows how it works through three examples: price of commodities, dollarization, and the...
Persistent link: https://www.econbiz.de/10008648332
This paper assesses several early warning (EWS) models of financial crises to propose a model that can predict the incidence of a currency crisis in developing countries. For this purpose, we employ the equal weighting (EW) and dynamic model averaging (DMA) approaches to combine forecast from...
Persistent link: https://www.econbiz.de/10012311939
The article presents some risks of external debt in Romania generated by its structure and characteristics. Given the rise in the share of short-term external debt, the associated risks increase, among which there is the augmentation in the volatility of the exchange rate of the national...
Persistent link: https://www.econbiz.de/10014506700