To Smooth or Not to Smooth-The Impact of Grants and Remittances on the Equilibrium Real Exchange Rate in Jordan /

This paper estimates the effect of grants and workers' remittances on Jordan's long-term equilibrium real exchange rate. We estimate an equilibrium path for the Jordanian real exchange rate using the Johansen cointegration methodology over the period 1964 to 2005. Controlling for other fun...

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Detalles Bibliográficos
Autor principal: Petri, Martin
Otros Autores: Saadi-Sedik, Tahsin
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 2006.
Colección:IMF Working Papers; Working Paper ; No. 2006/257
Acceso en línea:Full text available on IMF
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300 |a 1 online resource (37 pages) 
490 1 |a IMF Working Papers 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
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520 3 |a This paper estimates the effect of grants and workers' remittances on Jordan's long-term equilibrium real exchange rate. We estimate an equilibrium path for the Jordanian real exchange rate using the Johansen cointegration methodology over the period 1964 to 2005. Controlling for other fundamentals, we find that both grants and workers' remittances appreciate the equilibrium real exchange rate in a statistically and economically significant way. We also find that assessing deviations of the actual real exchange rate from the estimated equilibrium real exchange rate is nontrivial because different smoothing methodologies and the nonsmoothed estimates give very different results. 
538 |a Mode of access: Internet 
700 1 |a Saadi-Sedik, Tahsin. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2006/257 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2006/257/001.2006.issue-257-en.xml  |z IMF e-Library