Models of Equilibrium Real Exchange Rates Revisited: A Selective Review of the Literature
Reza Siregar and
No 2006-04, Centre for International Economic Studies Working Papers from University of Adelaide, Centre for International Economic Studies
One of the more important concepts in open macroeconomics is the Â“equilibrium real exchange rateÂ” (ERER). Real exchange rate misalignments are argued to have been the cause of loss of competitiveness and growth slowdowns and eventual currency crises (in the event of sustained overvaluations), overheating (in the event of sustained undervaluation), sectoral misallocation of resources, and global macroeconomic imbalances. This paper examines the underlying concepts, assumptions and analytical bases of commonly employed models of the equilibrium real exchange rate and the manner in which they are usually computed (i.e. operationalized) as well as their shortcomings.
Keywords: Equilibrium Real Exchange Rate (ERER); BEER; FEER; PEER; NATREX; Purchasing Power Parity (PPP). (search for similar items in EconPapers)
JEL-codes: F31 F32 (search for similar items in EconPapers)
Pages: 28 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.adelaide.edu.au/cies/papers/0604.pdf [301 https://www.adelaide.edu.au/cies/papers/0604.pdf]--> https://www.adelaide.edu.au/cies/papers/0604.pdf)
Working Paper: Models of Equilibrium Real Exchange Rates Revisited: A Selective Review of the Literature (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:adl:cieswp:2006-04
Access Statistics for this paper
More papers in Centre for International Economic Studies Working Papers from University of Adelaide, Centre for International Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Dmitriy Kvasov ( this e-mail address is bad, please contact ).