Real Exchange Rate Variability: An Empirical Analysis of the DevelopingCountries Case
The purpose of this paper is to investigate the potential role of
monetary and real factors in explaining real exchange rate variability in
developing countries. For this purpose two indexes of real effective exchange
rate variability that measure short-term and long-term variability were
constructed for 30 countries. The results obtained, using a generalized least
squares procedures on cross section data, indicate that real exchange rate
variability has been affected both by real and monetary factors. In
particular it was found that more unstable nominal exchange rate policies were
reflected in higher real exchange rate instability in the short-run; more
unstable domestic credit policies resulted in higher short-term real exchange
rate variability; and more unstable external terms of trade also affected
positively the degree of real exchange rate instability.
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.