Estimating the Half-Life of Theoretically Founded Real Exchange Rate Misalignments

This paper models empirically the short and long-term behavior of the real exchange rate misalignment -- a key variable in academic and policy circles. The equilibrium real exchange rate is derived from a theoretical model with intertemporal extern...

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Bibliographic Details
Main Author:	Kubota, Megumi
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, D.C. 2013
Subjects:	ACCOUNTING ADVERSE IMPACT AUTOREGRESSION BALANCE OF PAYMENT CAPITAL FLOWS COMMON CURRENCY CURRENCY CURRENCY CRISIS CURRENT ACCOUNT CURRENT ACCOUNT DYNAMICS CURRENT ACCOUNT POSITION DEPENDENT VARIABLE DEPRECIATION DEVALUATION DEVELOPING COUNTRIES DEVELOPMENT POLICY DISEQUILIBRIUM DOMESTIC CURRENCY DYNAMIC ADJUSTMENT ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC POLICIES ECONOMIC REVIEW EMPIRICAL EVIDENCE EQUILIBRIUM EQUILIBRIUM LEVEL EQUILIBRIUMS ERROR CORRECTION MODEL ERROR CORRECTION MODELS EXCHANGE RATE ARRANGEMENT EXCHANGE RATE ARRANGEMENTS EXCHANGE RATE DETERMINATION EXCHANGE RATE FLEXIBILITY EXCHANGE RATE POLICIES EXCHANGE RATE POLICY EXCHANGE RATE REGIME EXCHANGE RATE SHOCK EXCHANGE RATE STABILITY EXCHANGE RATE THEORY EXCHANGE RATES EXCHANGE-RATE EXOGENOUS VARIABLES EXPORTS EXTERNAL EQUILIBRIUM EXTERNAL SHOCKS FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL OPENNESS FISCAL POLICIES FLEXIBLE EXCHANGE RATE FOREIGN ASSET FOREIGN ASSETS FOREIGN INTEREST FOREIGN INTEREST RATES GDP GDP PER CAPITA GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODEL GOVERNMENT SPENDING GROSS DOMESTIC PRODUCT HARD PEG IMBALANCES IMPORT INDUSTRIAL COUNTRIES INDUSTRIAL ECONOMIES INFLATION INSTRUMENTAL VARIABLE INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS INTERNATIONAL MONEY INTERNATIONAL RESERVES INTERNATIONAL TRADE LONG RUN EQUILIBRIUM LONG-RUN EQUILIBRIUM LOSS OF COMPETITIVENESS MACROECONOMIC POLICY MACROECONOMICS MONETARY ARRANGEMENTS MONETARY ECONOMICS OPEN ECONOMIES OVERVALUATION PANEL DATA ESTIMATION PEG PERMANENT SHOCK POLICY EVALUATION POLICY RESEARCH POLITICAL ECONOMY POSITIVE COEFFICIENT POVERTY REDUCTION PRODUCTIVITY PURCHASING POWER PURCHASING POWER PARITY REAL APPRECIATION REAL DEPRECIATION REAL EFFECTIVE EXCHANGE RATE REAL EXCHANGE REAL EXCHANGE RATE REAL EXCHANGE RATE MISALIGNMENT REAL EXCHANGE RATE MISALIGNMENTS REAL EXCHANGE RATES REAL GDP REAL SHOCKS REAL TERMS RELATIVE PRICE RELATIVE PRICES SPEED OF ADJUSTMENT STATISTICAL ANALYSIS SUSTAINABLE CAPITAL TRADABLE GOODS TRANSACTION TRANSACTION COSTS UNDERVALUATION WAGES WORLD DEVELOPMENT INDICATORS
Online Access:	http://documents.worldbank.org/curated/en/2013/04/17582694/estimating-half-life-theoretically-founded-real-exchange-rate-misalignments http://hdl.handle.net/10986/14450

Internet

http://documents.worldbank.org/curated/en/2013/04/17582694/estimating-half-life-theoretically-founded-real-exchange-rate-misalignments
http://hdl.handle.net/10986/14450

Estimating the Half-Life of Theoretically Founded Real Exchange Rate Misalignments

Internet

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