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The Variability of the Tunisian Real Exchange Rate

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  • Zouhaier Hadhek
  • Hniya Sakli
  • Tahar Lassoued

Abstract

This article presents an estimate of the equilibrium real exchange rate for Tunisia using the model of Edwards (1998) and Elbadawi (1994). We calculate the distortion between the actual RER and the equilibrium RER and the misalignments related thereto. The study period was marked by phases of overvaluation and undervaluation of the RER.

Suggested Citation

  • Zouhaier Hadhek & Hniya Sakli & Tahar Lassoued, 2019. "The Variability of the Tunisian Real Exchange Rate," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(1), pages 115-128, January.
    • Handle: RePEc:ibn:ijefaa:v:11:y:2019:i:1:p:115-128
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    References listed on IDEAS

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    6. Shehu Usman Rano, Aliyu, 2007. "Real Exchange Rate Misalignment: An Application of Behavioral Equilibrium Exchange Rate (BEER) to Nigeria," MPRA Paper 10376, University Library of Munich, Germany.
    7. Ghura, Dhaneshwar & Grennes, Thomas J., 1993. "The real exchange rate and macroeconomic performance in Sub-Saharan Africa," Journal of Development Economics, Elsevier, vol. 42(1), pages 155-174, October.
    8. Jongwanich, Juthathip, 2009. "Equilibrium Real Exchange Rate, Misalignment, and Export Performance in Developing Asia," ADB Economics Working Paper Series 151, Asian Development Bank.
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    Cited by:

    1. Amor, Thouraya Hadj & Nouira, Ridha & Rault, Christophe & Sova, Anamaria Diana, 2023. "Real exchange rate misalignments and economic growth in Tunisia: New evidence from a threshold analysis of asymmetric adjustments," The Quarterly Review of Economics and Finance, Elsevier, vol. 88(C), pages 215-227.
    2. Ahmed Derbali, 2021. "The misalignment of real effective exchange rate: Evidence from Tunisia," IHEID Working Papers 04-2021, Economics Section, The Graduate Institute of International Studies.

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    More about this item

    Keywords

    asymmetric information; Islamic financial contracts; signalling; comparative advantage; incentive theory;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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