Purpose – This study’s main purpose is to investigate the effect of real exchange rate misalignment on economic growth performance for 21 emerging markets from 1980 through 2016. Methods The study individually measures series by using single-equation approach and then estimates misalignment, undervaluation, overvaluation dynamic panel system generalized method moments approach. Findings finds t...

a central problem ill empirical macroeconomics is to determine when and how much the exchange rate is misaligned. this paper clarifies and calculates the concept of’ the equilibrium real exchange rate, using a structural vector auto regression (var) model. by imposing long—run restrictions on a var model for iran, lour structural shocks are identified: nominal demand, real demand, supply and oi...

Large differences in national price levels exist across countries. In this paper, I develop a general equilibrium model predicting that these differences should be related to countries’ exchange rate regimes. My empirical findings confirm that countries with fixed exchange rate regimes have higher national price levels than countries with flexible regimes. At the disaggregate level, the relatio...

The paper studies the misalignment path of RMB/US$ exchange rate, focusing on managed floating period since July 2005 and determining impact central bank’s intervention misalignment. We adopt permanent-and-transitory component decomposition approach developed by Gonzalo Granger (1995) to estimate equilibrium rate its within a vector error correction model (VECM). sample for our study is quarter...