Real Exchange Rates and Fundamentals : A Cross-Country Perspective /

This paper employs newly constructed measures for productivity differentials, external imbalances, and commodity terms of trade to estimate a panel cointegrating relationship between real exchange rates and a set of fundamentals for a sample of 48 industrial countries and emerging markets. It finds...

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Bibliographic Details
Main Author: Ricci, Luca
Other Authors: Lee, Jaewoo, Milesi-Ferretti, Gian
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2008.
Series:IMF Working Papers; Working Paper ; No. 2008/013
Online Access:Full text available on IMF
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245 1 0 |a Real Exchange Rates and Fundamentals :   |b A Cross-Country Perspective /  |c Luca Ricci, Jaewoo Lee, Gian Milesi-Ferretti. 
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300 |a 1 online resource (25 pages) 
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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 employs newly constructed measures for productivity differentials, external imbalances, and commodity terms of trade to estimate a panel cointegrating relationship between real exchange rates and a set of fundamentals for a sample of 48 industrial countries and emerging markets. It finds evidence of a strong positive relation between the CPI-based real exchange rate and commodity terms of trade. The estimated impact of productivity growth differentials between traded and nontraded goods, while statistically significant, is small. Increases in net foreign assets and in government consumption tend to be associated with appreciating real exchange rates. 
538 |a Mode of access: Internet 
700 1 |a Lee, Jaewoo. 
700 1 |a Milesi-Ferretti, Gian. 
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