Productivity, commodity prices and the real exchange rate: The long-run behavior of the Canada–US exchange rate

Productivity, commodity prices and the real exchange rate: The long-run behavior of the Canada¬タモUS exchange rate

Article history: Received 9 May 2012 Received in revised form 8 August 2013 Accepted 8 August 2013 Available online 27 August 2013 The paper examines the Canada–US real exchange rate since the early 1970s to test two popular explanations of the long-run real exchange rate based on the influence of sectoral productivities and commodity prices. The empirical analysis finds that both variables exe...

Investigating the Short- run and Long-run Causality Relationship between the Exchange Rate Regime and the Real Exchange Rate Misalignment in the OPEC Countries

Real exchange rate misalignment means that the real exchange rate deviates from its equilibrium level and is the cause of many domestic and global economic problems. This index is considered as an important indicator in foreign competition and in case of adopting an inappropriate exchange rate regime; it may create economic instability and affect economic performance. This issue is important in...

The Appropriate Exchange Rate System and the Regulation and Forecast of Exchange Rate for Iran's Economy

A Study of the Real Exchange Rate Behavior and its Effects on Macroeconomic Variables

In this article, real exchange rate behavior and its effects on macroeconomic variables are studied by explaining two models; impulse function and forecasting predicted error decomposition. Studies show that high artificial currency value has caused domestic and foreign accounts equilibrium disturbance and foreign income decrease due to the slackening of commercial and agricultural activities, ...

Measuring the Real Exchange Rate Misalignment and the Factors Affecting it in the OPEC Member Countries (Emphasizing on the Capital Account Openness and Exchange Rate Flexibility)

Changes in the real exchange rate affect a country's balance of payments and international competitiveness, and its misalignment from the long-run equilibrium level usually creates imbalances in the macro economy. This is also important in countries with oil resources due to their foreign trade structure. Accordingly, due to the existence of few internal studies on the subject in selected count...