Author Topic: Correcting real exchange rate misalignment : conceptual and practical issues  (Read 318 times)

pioneer

  • To God be the glory alone
  • FOUNDER
  • GURU
  • *****
  • Posts: 18911
  • stay at home
    • View Profile
    • spiritual preparation
Correcting real exchange rate misalignment : conceptual and practical issues

This paper studies the issue of real exchange rate misalignment and the difficulties in settling international real exchange rate disputes. The authors show theoretically that determining when a country should be sanctioned for real exchange rate "manipulations" is difficult: in some situations a country's real exchange rate targeting can be beneficial to other countries, while in others it is not. Regardless, it is difficult to establish whether a misaligned real exchange rate is intentionally manipulated rather than unintentionally caused by other policies or by various distortions in the economy. The paper continues by illustrating the difficulty in measuring real exchange rate misalignment, and provides a critical assessment of existing methodologies. It concludes by proposing a new method for measuring real exchange rate misalignment based on differences in marginal products between producers of tradable and non-tradable goods.

Source: Correcting real exchange rate misalignment : conceptual and practical issues

Linkback: https://tubagbohol.mikeligalig.com/index.php?topic=57249.0
Romans 10:9
"That if you shall confess with your mouth the Lord Jesus, and shall believe in your heart that God has raised him from the dead, you shall be saved."
👇👇👇
Na-try mo na ba yung Tala app? Reliable sa unexpected expenses at laking tulong sa future! Use this code 9SO1TSL or visit www.tala.com to sign up!

unionbank online loan application low interest, credit card, easy and fast approval

Tags: