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IMF Staff papers, Volume 42 No. 3
Author:
International Monetary Fund. Research Dept.
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Series:
IMF Staff Papers
Volume/Issue:
Volume 1995: Issue 003
Language:
English
Publication Date:
01 Jan 1995
DOI:
https://doi.org/10.5089/9781451973396.024
ISBN:
9781451973396
ISSN:
1020-7635
Pages:
280
Keywords:
SP; paper number; capital control; series name; lending rate; IMF paper; Human capital; Real exchange rates; Exchange rates; Consumption; Capital controls; Africa; Australia and New Zealand; Global; Sub-Saharan Africa; Central and Eastern Europe; Europe
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This paper analyzes long-term exchange rate modeling. The paper reviews the literature that tests for a unit root in real exchange rates and the closely related work on testing for a unit root in the residual from a regression of the nominal exchange rate on relative prices. It argues that the balance of evidence is supportive of the existence of some form of long-term exchange rate relationship. The paper highlights that the form of this relationship, however, does not accord exactly with a traditional representation of the long-term exchange rate.
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Cover IMF Staff Papers
IMF Staff Papers
ISSN:
1020-7635
Publisher:
International Monetary Fund