Equilibrium real exchange rate in Macedonia Online publication date: Sun, 02-Dec-2007
by Goran Petrevski
International Journal of Monetary Economics and Finance (IJMEF), Vol. 1, No. 1, 2007
Abstract: This paper provides for an empirical analysis of real exchange rates in Macedonia. The empirical model specifies the equilibrium real exchange rate as a function of the fundamental factors. Then, using the coefficients of the empirical model, the deviation of the actual real exchange rate from its equilibrium values is estimated. Although the estimates differ with the chosen method for approximation of the fundamentals, it seems that the overvaluation of the real exchange rate does not pose serious problems for the policy makers in Macedonia. Finally, the estimation of the short-run empirical model implies slow adjustment of the actual real exchange rate to the long-run equilibrium level.
Online publication date: Sun, 02-Dec-2007
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Monetary Economics and Finance (IJMEF):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com