Front Matter Page
IMF Institute
Authorized for distribution by Ralph Chami
Contents
I. Introduction
II. Overview of Currency Unions
III. Determinants of the RER Behavior
IV. The Econometric Methodology
V. Estimation and Interpretation of the Results
A. Estimation of the Long-Run Determinants of the RER Behavior in the GCC
B. Interpretation of the Results
C. RER Equilibrium and Misalignment
VI. Conclusion and Policy Recommendations
References
Tables
1. Variables Definition
2. RER Correlation
3. LIQ Correlation
4. Budget Balance Correlation
5. Government Consumption Correlation
6. Openness Correlation
7. Capital Flows Correlation
8. Panel Unit Root Tests
9. The Long-and-Short-Run Determinants of the Real Exchange Rate Estimator
Figures
1. Calculated RER
2. Monetary Policy Indicator - Broad Money to GDP
3. Budget Balance to GDP
4. Government Consumption to GDP
5. Trade Openness
6. Measures of Capital Flows
7. RER Misalignment