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Equilibrium Exchange Rates and Misalignments: The Case of Homogenous Emerging Market Economies

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  • Christian K. Tipoy
  • Marthinus C. Breitenbach
  • Mulatu F. Zerihun

Abstract

We compute the exchange rate misalignment for a set of emerging economies between 1980 and 2013 using the behavioural equilibrium exchange rate definition. The real equilibrium exchange rate is constructed using a parsimonious model and estimators that are robust to cross-sectional independence and small sample size bias. We find that these countries tend to intervene […]

Suggested Citation

  • Christian K. Tipoy & Marthinus C. Breitenbach & Mulatu F. Zerihun, 2017. "Equilibrium Exchange Rates and Misalignments: The Case of Homogenous Emerging Market Economies," Working Papers 713, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:713
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    Cited by:

    1. Olawumi Dele Awolusi, 2021. "Economic Growth and Socioeconomic Sustainability in BRICS Countries: A Vector Error Correction Modeling Approach," Journal of Economics and Behavioral Studies, AMH International, vol. 13(3), pages 1-23.

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    More about this item

    Keywords

    International trade; Market Efficiency; Monetary Policy; Panel data; Time Series Analysis;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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