Stabilization, credibility and regime dependent real exchange rates

Peter A. Prazmowski
Additional contact information
Peter A. Prazmowski: Kingston University London

No 2006-1, Economics Discussion Papers from School of Economics, Kingston University London

Abstract: This paper studies a dynamic error correction model (ECM) highlighting the consequences of regime changes and of credibility on the performance of real exchange rates during stabilization. The analysis shows that the structural parameters of the ECM, from which an equilibrium real exchange rate is calculated, will be subject to structural breaks reflecting regime and credibility changes. Empirical evidence is presented on the Mexican 1988 and 1995 stabilization episodes.

Keywords: equilibrium real exchanges rates; inflation stabilization; credibility; regime changes; ECM; Mexico (search for similar items in EconPapers)
JEL-codes: E31 F31 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2006-01-01
References: Add references at CitEc
Citations:

Downloads: (external link)
http://eprints.kingston.ac.uk/1607/1/Prazmowski-P-1607.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:kngedp:2006_001

Access Statistics for this paper

More papers in Economics Discussion Papers from School of Economics, Kingston University London Kingston University London, School of Economics, Penrhyn Road, Kingston upon Thames, Surrey, KT1 2EE, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Andrea Ingianni ().