The Real Equilibrium South African Rand/US Dollar Exchange Rate: A Comparison of Alternative Measures |
| |
Authors: | Andrea Saayman |
| |
Institution: | (1) School of Economics, North-West University, Potchefstroom Campus, Private Bag X6001, Potchefstroom, South Africa, 2521 |
| |
Abstract: | This article indicates how different measures of the real exchange rate, i.e., the exchange rate adapted for cost inflation,
price inflation and labour costs, influence the equilibrium view and misalignment of the South African rand/US dollar exchange
rate. The approach followed is based on the behavioural equilibrium exchange rate approach by Clark and MacDonald (1998), where the exchange rate is influenced by a number of fundamental and transitory factors. The real equilibrium exchange
is estimated by using a single equation regression and a number of key explanatory variables. To determine the long-run relationship
a Vector Error Correction Mechanism is used. |
| |
Keywords: | equilibrium exchange rate South Africa |
本文献已被 SpringerLink 等数据库收录! |
|