Article ID Journal Published Year Pages File Type
5054210 Economic Modelling 2013 10 Pages PDF
Abstract
► We examine the effect of macroeconomic fundamentals on REER. ► We estimate the extent of currency over- or under-valuation. ► The higher the flexibility of the currency regime, the lower is the misalignment. ► The impact of misalignment is explored on the probability of a currency crisis. ► The currency regime choice requires linking misalignment and crisis indicators.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Exchange rate regime, real misalignment and currency crises
Authors
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