A medium-term framework for analyzing the real exchange rate, with applications to the Philippines and Tanzania (Английский)

A competitive official real exchange rate is important to external balance and sustainable medium-term growth in developing countries. This article presents a methodology for estimating appropriate real rate and provides a basis for evaluating the extent to which the prevailing rate is misaligned. In particular, the medium-term equilibrium real exchange rate is evaluated by estimating the effects of structural factors on the trend observed for a country's...
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