Estimation of a Behavioral Equilibrium Exchange Rate Model for Ghana

WPIEA2007155 Image
Price:  $18.00

Author/Editor: Elena Loukoianova, Plamen Iossifov
Release Date: © July, 2007
ISBN : 978-1-45186-719-0
Stock #: WPIEA2007155
English
Stock Status: Available

Languages and formats available

EnglishFrenchSpanishArabicRussianChinesePortuguese
PaperbackYes
PDFYes

Description

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 the equilibrium path are eliminated within two to three years.




More publications in this series: Working Papers


More publications by: Elena Loukoianova ; Plamen Iossifov