Real and Monetary Determinants of Real Exchange Rate Behavior: Theory and Evidence from Developing Countries

@article{Edwards1988RealAM,
  title={Real and Monetary Determinants of Real Exchange Rate Behavior: Theory and Evidence from Developing Countries},
  author={Sebasti{\'a}n Edwards},
  journal={Monetary Economics},
  year={1988}
}
  • S. Edwards
  • Published 1 September 1988
  • Economics
  • Monetary Economics
View on SSRN
econ.ucla.edu
461 Citations
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This article analyzes the theory of equilibrium real exchange rates and defines misalignment as a deviation of the real exchange rate (RER) from its equilibrium level. The role of macroeconomic…
Adjustment to Monetary Policy and Devaluation Under Two-Tier and Fixed Exchange Rate Regimes
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Recent work on development strategy emphasizes export-based approaches in contrast to industrialization based on domestic markets. This paper explores the evidence for the new paradigm from both…
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When facing persistent balance of payments problems, some countries have resorted to a dual exchange rate system as an alternative to a uniform exchange rate adjustment. Typically under the dual…
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The exchange rate consistent with high employment and a balanced current account are rarely the same as the rates consistent with asset market equilibrium at interest rates policy makers wish to…
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This article examines the use of fiscal policies to sustain the effects of a nominal devaluation on the real exchange rate. It is shown that the magnitude of the change in the real exchange rate…
Unification of dual exchange markets
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