[PDF] Top 20 Determinants of Equilibrium Real Exchange Rate and its Misalignment in Kenya: A Behavioral Equilibrium Exchange Rate Approach

... looking approach and involves a number of steps: estimating the long-run relationship between the current account balance and its determinants using dataset of several countries over some period; ... See full document

... extension its overall macroeconomic performance (Westaway and Driver, 2004; Zalduendo, 2006, Eckstein and Friedman, 2011; Dunaway and Li, 2005; MacDonald and Ricci, 2003 ...the real exchange ... See full document

... the exchange rate policy of China has gained growing attention around the ...modeling equilibrium real exchange rates, the results of any one approach must necessarily be viewed ... See full document

... short-run determinants of the ...Granger approach instead, which is conducted in two ...long-run equilibrium relationship as per Equation 1 using data series in ...long-run equilibrium ... See full document

... final approach is the behavioural equilibrium real exchange ...This approach is different from the previous three ...the equilibrium real exchange rate from ... See full document

... key real di¤erentials between the euro-zone and the US, namely a real yield di¤erential and the relative real GDP growth di¤erential (Corsetti ...known exchange rate models would ... See full document

... which exchange rate regimes induce more ...flexible exchange rate regime, the foreign exchange market determines the appropriate level of the nominal exchange ...result, ... See full document

... an equilibrium exchange rate specifically for developing countries based on reduced-form single equation ...only real (fundamental) variables influence the equilibrium real ... See full document

... RMB misalignment result in a table to show the concrete degree of misalignment of the RMB in each year ...the misalignment results given in the figures (Zhang, 2001, ...of misalignment of the ... See full document

... utilized approach to measure real exchange rate misalignment has been the Purchasing Power Parity (PPP) method, due in part to its ...of misalignment, but instead captures ... See full document

... determine equilibrium real exchange rate of Algerian Dinar (DZD) in order to see the influence of fundamental factors toward Algerian Dinar exchange rate, and to understand the ... See full document

... stock-flow approach to estimating the real equilibrium exchange rate, this paper estimated misalignments of real exchange rates from the equilibrium values in ... See full document

... similar approach in Botswana and Ghana, ...paper, real exchange rate is assumed to follow the path dictated by economic fundamentals, that is, while real exchange rate ... See full document

... a real exchange rate movement, then, boils down to the determination of the unobserved equilibrium value of the ...the determinants of the ERER in developing countries include Bartolini ... See full document

... this approach. Several studies that employed this approach had obtained inconsistent ...influencing real exchange rates. By studying the determinants of real equilibrium ... See full document

... Fundamental Equilibrium Exchange Rate (FEER) model (Edwards, 1989 ) using the Johansen’s (1995) cointegration methodology in order to derive the equilibrium paths and corresponding ... See full document

... between exchange rate misalignment, REER volatility and economic performance in general and between REER misalignment and exports in ...REER misalignment and economic performance. For ... See full document

... monetary approach to the balance of payments is examined, which is in turn divided into section ...CAM approach is presented in its essential lines and in section ...KAM approach is shown. The ... See full document

... the exchange rate of zloty as related to dollar was depreciated by ...effective exchange rate of zloty was depreciated by 33% (in the Czech Republic, by 13%, in Hungary by ...the ... See full document

... of its several advantages over those alternative ...with real exchange rate whereas the remaining showed weak correlation with real exchange ... See full document