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- W2000774277 abstract "This paper develops a dynamic model of real exchange rate (RER) behavior in developing countries. A three goods economy (exportables, importables and non-tradables) is considered. Residents of this country hold domestic and foreign assets, and there is a dual exchange rate regime. There is a government that consumes importables and non-tradables. A distinction is made between equilibrium and disequilibrium movements of the RER. The determinants of real exchange rate misalignment are studied with emphasis placed on the role of devaluations and balance of payments crises. The implications of the model are tested using data for 12 developing countries. The results obtained are generally favorable for the model. The issue of RER stationarity is also analyzed." @default.
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- W2000774277 date "1988-11-01" @default.
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- W2000774277 title "Real and monetary determinants of real exchange rate behavior: Theory and evidence from developing countries" @default.
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- W2000774277 doi "https://doi.org/10.1016/0304-3878(88)90048-x" @default.
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