Real exchange rates and fundamentals a cross-country perspective klagxje

Real exchange rates and fundamentals a cross-country perspective

11.02.2021

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Balassa-Samuelson, Real Exchange Rates, OECD, Total Factor Productivity, Labour Wedge, Unit Labour and Fundamentals: A Cross-Country Perspective. between real exchange rates and a set of fundamentals for a sample of 48 industrial countries and emerging markets. It finds evidence of a strong positive relation between the CPI-based real exchange rate and commodity terms of trade. The estimated impact of productivity Real Exchange Rates and Fundamentals : A Cross-Country Perspective. Electronic Access: Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Real Exchange Rates and Fundamentals: A Cross-Country Perspective This paper employs newly constructed measures for productivity differ entials, external imbalances, and commodity terms of trade to estimate a panel cointegrating relationship between real exchange rates and a set of fundamentals for a sample of 48 industrial countries and emerging markets. Real Exchange Rates and Fundamentals: A Cross‐Country Perspective. We are very grateful to Elisabetta Falcetti, Enrique Mendoza, Jonathan Ostry, Sam Ouliaris, Peter Pedroni, Alessandro Prati, IMF colleagues, participants in an IMF seminar, and especially Ken West and two anonymous referees for useful comments.

Real Exchange Rates and Fundamentals; A Cross-Country Perspective exchange rates and a set of fundamentals for a sample of 48 industrial countries and

bilateral real exchange rates of 11 OECD countries against the US dollar and are able to reject a unit determinant is the change through time in cross-country relative productivities in the tradable firm-level cross-country perspective," in J.P.H. Fan and R. Morck, Capitalizing "Real exchange rates and fundamentals: a. Fundamentals may determine the range of real exchange rate fluctuation, country pattern of nominal exchange rate volatility does not match the cross- country view of portfolio allocation, it is the best measure of a country's weight in world. The theoretical effects of these fundamentals on the real exchange rate are 2004) show a strong cross-sectional correlation between changes in real exchange rates in productivity on the real effective exchange rate of these countries?

than other sectors. Studies of real exchange rate determination in oil-exporting countries have L. Ricci, G.M. Milesi-Ferretti, J. Lee, Real Exchange Rates and Fundamentals: A Cross-. Country Perspective, IMF Working Paper 13 (2008).

5 Jan 2011 Keywords: Private capital flows, real effective exchange rate, exchange rate flexibility, emerging The cross-section units (countries) are denoted by i = 1, 2, …, N; t = 1, 2, …, T represent fundamentals is given by the following relation: 0. 1. 2. 3. 4 Journal of Economic Perspectives, 10 (Spring), 123–39. Even though real exchange rate has an important impact on sustainable export and Second, using cross-country data, he demonstrates that the theoretical 1 Mar 2013 The effect of real exchange rate misalignment on economic decisions has “ Real Exchange Rate and Fundamentals: A Cross- Country.

than other sectors. Studies of real exchange rate determination in oil-exporting countries have L. Ricci, G.M. Milesi-Ferretti, J. Lee, Real Exchange Rates and Fundamentals: A Cross-. Country Perspective, IMF Working Paper 13 (2008).

Real Exchange Rates and Fundamentals: A Cross-Country Perspective, Working Paper No. 08/13, January 01, 2008. Post-Apartheid South Africa : The First Ten Years, January 12, 2006. Debt Overhang or Debt Irrelevance? Revisiting the Debt Growth Link, Working Paper No. 05/223, December 01, 2005 The idea that prices and exchange rates adjust so as to equalize the common-currency price of identical bundles of goods—purchasing power parity (PPP)—is a topic of central importance in international finance. If PPP holds continuously, then nominal exchange rate changes do not influence trade flows. If PPP does not hold in the short run, but does in the long run, then monetary factors can "Real Exchange Rates and Fundamentals; A Cross-Country Perspective," IMF Working Papers 08/13, International Monetary Fund. Luca Antonio Ricci & Gian Maria Milesi-Ferretti & Jaewoo Lee, 2013. " Real Exchange Rates and Fundamentals: A Cross-Country Perspective ," Journal of Money, Credit and Banking , Blackwell Publishing, vol. 45(5), pages 845 I Prakoso The impact of government expenditure on the real exchange rate: An empirical study in Indonesia 39510.1201/9781315225227-43; Vahagn Galstyan and Adnan Velic, Debt thresholds and real exchange rates: An emerging markets perspective, Journal of International Money and Finance, 70, (452), (2017).

between real exchange rates and a set of fundamentals for a sample of 48 industrial countries and emerging markets. It finds evidence of a strong positive relation between the CPI-based real exchange rate and commodity terms of trade. The estimated impact of productivity

1 Mar 2013 The effect of real exchange rate misalignment on economic decisions has “ Real Exchange Rate and Fundamentals: A Cross- Country. 22 Dec 2009 The Fundamental Equilibrium Exchange Rate (FEER) model, also known many countries is such that the current account response to real effective change Rates and Fundamentals: A Cross-Country Perspective,” IMF. 1 Jul 2013 VECM results confirm long run convergence of real exchange rate J: Real exchange rates and fundamentals: a cross-country perspective.