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Tunisia's Experience with Real Exchange Rate Targeting and the Transition to a Flexible Exchange Rate Regime Author info | Abstract | Publisher info | Download info | Related research | Statistics E. Martin
I. Karpowicz
Nicole Laframboise
Randa Sab
Domenico Fanizza
Over the past decade or so, Tunisia has experienced a strong economic performance while pursuing a constant real exchange rate rule (CRERR). The limitations of this rule are now beginning to emerge in the context of a more open economy, regional integration, a more market-based monetary policy, and the desire to relax capital controls. This paper explores how Tunisia avoided the pitfalls of real exchange rate targeting as predicted by the theoretical models. By estimating the equilibrium real exchange rate based on fundamental variables and assessing different measures of competitiveness, the paper finds no evidence of a misalignment in the current level of the exchange rate.
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Paper provided by International Monetary Fund in its series IMF Working Papers with number
02/190.
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Length: 27 pages
Date of creation: 19 Nov 2002Date of revision:
Handle: RePEc:imf:imfwpa:02/190Contact details of provider: Postal: International Monetary Fund, Washington, DC USA Phone: (202) 623-7000 Fax: (202) 623-4661 Email: Web page: http://www.imf.org/external/pubind.htm More information through EDIRC
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For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: Real effective exchange rates ; Tunisia ; Flexible exchange rates ; Exchange rate regimes ; Other versions of this item:
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Jose De Gregorio & Holger C. Wolf & Alberto Giovannini, 1994.
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
BEN ALI Mohamed Sami, 2006.
"Capital Account Liberalization And Exchange Rate Regime Choice, What Scope For Flexibility In Tunisia? ,"
William Davidson Institute Working Papers Series
wp815, William Davidson Institute at the University of Michigan Stephen M. Ross Business School.
[Downloadable!]
Grand Nathalie & Dropsy Vincent, 2005.
"Exchange Rate And Inflation Targeting In Morocco And Tunisia ,"
Macroeconomics
0507018, EconWPA.
[Downloadable!]
Ludvig Söderling & Domenico Fanizza, 2006.
"Fiscal Determinants of Inflation: A Primer for the Middle East and North Africa ,"
IMF Working Papers
06/216, International Monetary Fund.
[Downloadable!]
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