IDEAS home Printed from https://ideas.repec.org/p/nip/nipewp/3-2016.html
   My bibliography  Save this paper

Real Exchange Rate Volatility: Is Sub-Saharan Africa Different?

Author

Listed:
  • Michael Bleaney

    (School of Economics, University of Nottingham)

  • Manuela Francisco

    (World Bank, Washington DC, and NIPE, University of Minho)

Abstract

Real effective exchange rate volatility is examined for 90 countries using monthly data for the period January 1990 to June 2006. Volatility increases with country size and the inflation rate, and is greater in developing countries. Volatility is particularly high in sub-Saharan Africa after controlling for these factors. Exchange rate regime effects, as identified by the IMF’s current de facto methodology, are significant. Free floats have higher volatility than other regimes, and crawling pegs/bands appear to be a form of real exchange rate targeting. The results are robust to alternative volatility measures.

Suggested Citation

  • Michael Bleaney & Manuela Francisco, 2016. "Real Exchange Rate Volatility: Is Sub-Saharan Africa Different?," NIPE Working Papers 3/2016, NIPE - Universidade do Minho.
  • Handle: RePEc:nip:nipewp:3/2016
    as

    Download full text from publisher

    File URL: http://www.nipe.eeg.uminho.pt/Uploads/WP_2016/NIPE_WP_03_2016.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Exchange rate regimes; inflation; volatility;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nip:nipewp:3/2016. 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: . General contact details of provider: https://edirc.repec.org/data/nipampt.html .

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: NIPE (email available below). General contact details of provider: https://edirc.repec.org/data/nipampt.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.