After the collapse of the Breton Woods system, the increased fluctuations of the exchange rates pushed the developing countries to adopt exchange rate policies to avoid rocking of the balance of payments. Since 1973, Tunisia adopted fixed or intermediary exchange rate policies to support or ameliorate her competitiveness and later to balance her current account. By calculating the real effective exchange rate misalignment, we showed that this country did not achieve her goals and that amelioration of competitiveness occurred only as from the moment when she softened her exchange policies. A policy of floating exchange rate is recommended for Tunisia especially why this country is more and more open.
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Publisher Info
Paper provided by Faculty of economics, Department of Economics in its series Working Papers with number
200835.
Length: 14 pages Date of creation: Feb 2008 Date of revision:
Sep 2008 Publication status: Published in Panoeconomicus, September 2008, pages 353-367 Handle: RePEc:voj:wpaper:200835