Contributions

  • Leigh, Lamin - Contributor
  • Li, Xiangming. - Contributor
  • International Monetary Fund. Asia and Pacific Dept. - Contributor

Publication

2006 - International Monetary Fund, Asia and Pacific Dept., Washington, D.C., District of Columbia

Language

English

Word Count

3,250 words, Guess

Page Count

13 pages

Identifiers

  • Better World Books9781451864809
  • Better World Books9781452765273
  • Better World Books9781451909333
  • Open LibraryOL19374349M

Classifications

  • LCCHG3851

Description

Increased attention is being paid to assessments of the actual values of countries' real exchange rates relative to their "equilibrium" values as suggested by "fundamental" determining factors. This paper assesses the robustness of alternative approaches and models commonly used to derive equilibrium real exchange rate estimates. Using China's currency to illustrate this analysis, the variance in estimates raises serious questions regarding how robust the results are. The basic conclusion from the tests used here is that, at least for China, small changes in model specifications, explanatory variable definitions, and time periods used in estimation can lead to very substantial differences in equilibrium real exchange rate estimates. Thus, such estimates should be treated with great caution.

Subjects

Topics

Econometric modelsForeign exchange ratesEquilibrium (Economics)Foreign exchange rates -- China -- Econometric models

Places

Series Statement

  • IMF working paper -- WP/06/220

Links

Reader Reviews

No reviews yet for this book.

Be the first to share your thoughts!