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Sustainable exchange rates when trade winds are plentiful.
- Article from:
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National Institute Economic Review
- Article date:
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April 1, 2008
- Author:
- Babecky, Jan; Bulir, Ales; Smidkova, Katerina
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Copyright informationCOPYRIGHT 2008 National Institute of Economic and Social Research. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Estimation and simulation of sustainable real exchange rates in a sample of EU member countries find vulnerabilities connected to the adoption of the euro if the rate vis-a-vis the euro were to be fixed with weak fundamentals and inappropriate policies. Sample countries have benefited from dramatic improvements in their external positions, in part driven by inflows of foreign direct investment. As a result, exchange rate misalignments have narrowed in most countries and, looking ahead, are expected to narrow further. These results are conditional, however, on optimistic projections with respect to world import demand and foreign direct investment inflows.
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Exchange Rate Policy in Philippine Development: Analytical Considerations
Research Paper Series (Philippine Institute for Development Studies);
January 1, 2003 ;
Anonymous;
787 words
......fixed typically represent the real exchange rate simply as a ratio of the nominal...traces the movement of the real exchange rate over time, foreign prices cannot...Two policy-induced sources of real exchange rate overvaluation It is in an accounting...
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Journal of Economics and Finance;
April 1, 2002 ;
Aleisa, Eisa A; Dibooglu, Sel;
787 words
......investigates the sources of real exchange rate movements in Saudi Arabia by decomposing real exchange rate movements into those attributable...significant role in explaining real exchange rate movements in Saudi Arabia...
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Monetary and Exchange Rate Policy in Colombia: Effects on the Real...
Journal of Development Studies;
December 1, 2001 ;
Kamas, Linda;
787 words
......the causes and effects of the real exchange rate appreciation in Colombia during...substantial appreciation of the real exchange rate during the 1990s was an important...substantial appreciation of the real exchange rate during the 1990s. This appreciation...
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Exchange Rate Policy in Philippine Development: Conclusion
Research Paper Series (Philippine Institute for Development Studies);
January 1, 2003 ;
Anonymous;
787 words
...The real exchange rate is arguably the most important relative...floundered as a consequence of the real exchange rate being heavily overvalued. On the...competitive" real exchange rates. The real exchange rate links the nominal exchange ...
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Real and nominal determinants of real exchange rates in Latin America:...
Journal of Development Studies;
August 1, 2003 ;
Joyce, Joseph P. Kamas, Linda;
787 words
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Real Exchange Rate Determination in Eastern Europe.(Czech Republic;...
Atlantic Economic Journal;
September 1, 2000 ;
GRUBACIC, SANJA;
787 words
......therefore, the likelihood of real exchange rate appreciation. Using this framework...the appropriate level of the real exchange rate? What are the costs and impediment...the appropriate level for the real exchange rate in transitional economies...
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Properties of the fundamental equilibrium exchange rate in the Treasury...
National Institute Economic Review;
July 1, 1999 ;
Church, Keith B.;
787 words
......with the appreciation of the real exchange rate. Outside of a currency union...that any adjustment of the real exchange rate to an appropriate level will...calculate the value of the real exchange rate for the UK that is compatible...
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Monetary policy, elasticity dynamics, and real exchange rate reversal.
Journal of Money, Credit & Banking;
May 1, 1995 ;
Isaac, Alan G.;
787 words
...Real exchange rate of volatility in the 1970s focused...sustained but impermanent effects on the real exchange rate, the balance of trade, and other...overshoot: the dollar experienced real exchange rate reversal.(1) To some observers, the...
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Real exchange rate volatility and economic openness: theory and evidence.
Journal of Money, Credit & Banking;
August 1, 2002 ;
Hau, Harald;
787 words
...ELIMINATING REAL EXCHANGE RATE VOLATILITY represents the foremost...integration and openness related to real exchange rate volatility? Does increasing economic...example, have pointed to large real exchange rate volatility of the DM/dollar rate...
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THE REAL EXCHANGE RATE PROCESS AND ITS REAL EFFECTS: THE CASES OF MEXICO...
Journal of Applied Economics;
May 1, 2004 ;
Grier, Kevin B; Hernández-Trillo, Fausto;
787 words
......factors that may affect the real exchange rate (RER) process and the real...influence the behavior of the real exchange rate. Fixed nominal rates can initially...inappropriate, affecting the real exchange rate and inviting speculative attacks...
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Targeting the real exchange rate in developing countries.
Finance & Development;
March 1, 1993 ;
Montiel, Peter J. Ostry, Jonathan D.;
787 words
......countries have recently adopted real exchange rate rules as a means of maintaining...An IMF study explains how real exchange rate rules can easily have destabilizing...Most commonly, adoption of a real exchange rate rule in a developing country...
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The exchange rate for the krone and exchange rate expectations
Norges Bank. Inflation Report;
March 1, 2004 ;
Anonymous;
787 words
......developments in two measures of the real exchange rate, relative consumer prices and...the chart are above zero, the real exchange rate is stronger and competitiveness...average level since 1970. The real exchange rate has fluctuated considerably...
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The effects of domestic policies and external factors on the real exchange...
American Economist;
March 22, 1996 ;
Ikoba, Jonathan Nyatepe-Coo, Akorlie A. Owoye, Oluwole;
787 words
......policy, and the effects of real exchange rate misalignment on economic performance...in Latin America, in which real exchange rate overvaluation has been blamed...In most of the discussions, real exchange rate misalignment and the associated...
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Measuring shocks to exchange rate under floating regime.(ECONOMICS...
Journal of Economics and Economic Education Research;
May 1, 2004 ;
Brahmasrene, Tantatape Jiranyakul, Komain;
787 words
......caused fluctuations in the real exchange rate. Based upon the results of...and real shocks that affect real exchange rate have become more prevalent...cope with fluctuations in the real exchange rate, especially in the long run...
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Official Exchange Rate Arrangements and Real Exchange Rate...
Journal of Money, Credit & Banking;
November 1, 2001 ;
PARSLEY, DAVID C. POPPER, HELEN A.;
787 words
......designations. Most notably, real exchange rate mean reversion is fastest when...adjustment is fastest when the real exchange rate deviates greatly from its mean...extremely high nominal and real exchange rate variability to many countries...
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