Estimation of a Behavioral Equilibrium Exchange Rate Model for Ghana |
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| Author:
| Loukoianova, Elena
Iossifov, Plamen |
| Series title: | IMF Working Papers |
| ISBN: | 978-1-4623-6692-7 |
| Publication Date: | Jul 2007 |
| Publisher: | International Monetary Fund
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| Book Format: | Ebook |
| List Price: | USD $9.00 |
Book Description:
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The paper estimates a behavioral equilibrium exchange rate model for Ghana. Regression results show that most of the REER's long-run behavior can be explained by real GDP growth, real interest rate differentials (both relative to trading-partner countries), and the real world prices of Ghana's main export commodities. on the basis of these fundamentals, the REER in late 2006 was found to be very close to its estimated equilibrium level. the results also suggest, that deviations from...
More DescriptionThe paper estimates a behavioral equilibrium exchange rate model for Ghana. Regression results show that most of the REER's long-run behavior can be explained by real GDP growth, real interest rate differentials (both relative to trading-partner countries), and the real world prices of Ghana's main export commodities. on the basis of these fundamentals, the REER in late 2006 was found to be very close to its estimated equilibrium level. the results also suggest, that deviations from the equilibrium path are eliminated within two to three years.