Estimation of the Equilibrium Real Exchange Rate for South Africa /

Based on the Johansen cointegration estimation methodology, much of the long-run behavior of the real effective exchange rate of South Africa can be explained by real interest rate differentials, GDP per capita (both relative to trading partners), real commodity prices, trade openness, the fiscal ba...

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Autor principal: MacDonald, Ronald
Altres autors: Ricci, Luca
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2003.
Col·lecció:IMF Working Papers; Working Paper ; No. 2003/044
Accés en línia:Full text available on IMF
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Sumari:Based on the Johansen cointegration estimation methodology, much of the long-run behavior of the real effective exchange rate of South Africa can be explained by real interest rate differentials, GDP per capita (both relative to trading partners), real commodity prices, trade openness, the fiscal balance, and the extent of net foreign assets. On the basis of these fundamentals, the real exchange rate in early 2002 was found to be significantly more depreciated with respect to the estimated equilibrium level. The half-life of the deviation of the real exchange rate from the estimated equilibrium one was found to be somewhat more than two years.
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Descripció física:1 online resource (24 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students