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The Equilibrium Real Exchange Rate in a Commodity Exporting Country: The Case of Russia Author info | Abstract | Publisher info | Download info | Related research | Statistics Emil Stavrev
Nikola Spatafora
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Questions about external competitiveness, exchange rate misalignment, and the appropriate exchange rate policy feature prominently in the Russian policy debate. This paper furthers the debate by estimating empirically Russia's equilibrium real exchange rate (ERER)-that is, the rate consistent with the long-run economic fundamentals-and sheds light on the extent to which exchange rate policy should be changed. The paper confirms that the ERER reflects both productivity and the terms of trade. It suggests that Russia should target a significant medium-term current account deterioration and a real appreciation perhaps exceeding 10 percent. However, this latter number remains very sensitive to the assumed long-run oil prices.
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Paper provided by International Monetary Fund in its series IMF Working Papers with number
03/93.
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Length: 21 pages
Date of creation: 21 May 2003Date of revision:
Handle: RePEc:imf:imfwpa:03/93Contact 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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Keywords: Real effective exchange rates ; Russian Federation ; Other versions of this item:
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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.)
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