Advanced Search
MyIDEAS: Login to save this paper or follow this series

Real Exchange Rate Misalignments and Growth

Contents:

Author Info

  • Ofair Razin

    (Georgetown University)

  • Susan M. Collins

    (Georgetown University and The Brookings Institution)

Registered author(s):

    Abstract

    Real exchange rate (RER) misalignment refers to a situation in which a country's actual RER deviates from some notion of an implicit "ideal" RER. An exchange rate is labeled "undervalued" when it is more depreciated than this ideal, and "overvalued" when it is more appreciated than this ideal. Such misalignments are widely believed to influence economic behavior. In particular, Overvaluation is expected to hinder economic growth while undervaluation is sometimes thought to provide an environment conducive to growth. But unless the "ideal" is explicitly specified, the concepts of RER misalignment remain subjective. The objectives of this paper are first to develop and construct explicit measures of RER misalignment, and second to explore systematically the relationships between misalignment and economic growth.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://128.118.178.162/eps/if/papers/9707/9707001.pdf
    Download Restriction: no

    File URL: http://128.118.178.162/eps/if/papers/9707/9707001.html
    Download Restriction: no

    File URL: http://128.118.178.162/eps/if/papers/9707/9707001.ps.gz
    Download Restriction: no

    Bibliographic Info

    Paper provided by EconWPA in its series International Finance with number 9707001.

    as in new window
    Length: 31 pages
    Date of creation: 21 Jul 1997
    Date of revision:
    Handle: RePEc:wpa:wuwpif:9707001

    Note: Type of Document - WordPerfect; prepared on IBM PC ; to print on HP; pages: 31 ; figures: included. The research presented in this paper is work that Ofair Razin completed for his doctoral dissertation. It was a pleasure to advise him in his doctoral work and to prepare this paper for publication, in his memory. This paper is forthcoming in Assaf Razin and Efraim Sadka (eds.) International Economic Integration: Public Economics Perspectives, Cambridge University Press.
    Contact details of provider:
    Web page: http://128.118.178.162

    Related research

    Keywords:

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. Peter B. Clark & Steven A. Symansky & Tamim Bayoumi & Mark P. Taylor, 1994. "Robustness of Equilibrium Exchange Rate Calculations to Alternative Assumptions and Methodologies," IMF Working Papers 94/17, International Monetary Fund.
    2. repec:fth:inadeb:310 is not listed on IDEAS
    3. Campa, Joe Manuel, 1993. "Entry by Foreign Firms in the United States under Exchange Rate Uncertainty," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 614-22, November.
    4. Robert J. Barro, 1989. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
    5. 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.
    6. Susan M. Collins & Barry P. Bosworth, 1996. "Economic Growth in East Asia: Accumulation versus Assimilation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 27(2), pages 135-204.
    7. Michael Gavin & Ricardo Hausmann & Leonardo Leiderman, 1995. "Macroeconomics of Capital Flows to Latin America: Experience and Policy Issues," Research Department Publications 4012, Inter-American Development Bank, Research Department.
    8. Michael Gavin & Ricardo Hausmann & Leonardo Leiderman, 1995. "The Macroeconomics of Capital Flows to Latin America: Experience and Policy Issues," IDB Publications 5821, Inter-American Development Bank.
    9. John V. Leahy & Toni M. Whited, 1995. "The Effect of Uncertainty on Investment: Some Stylized Facts," NBER Working Papers 4986, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpif:9707001. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.