The Equilibrium Real Exchange Rate of the Malagasy Franc
The Equilibrium Real Exchange Rate of the Malagasy Franc

Author: Mr.John Cady

Publisher: International Monetary Fund

Published: 2003-02-01

Total Pages: 20

ISBN-13: 1451844689

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Employing cointegration techniques, the long-run determinants of Madagascar's real exchange rate are examined from a stock-flow perspective. The long-run behavior of the real effective exchange rate is explained by the net foreign asset position and factors affecting trade flows. An index of the long-run equilibrium real exchange rate is developed to assess the degree of misalignment. The general conclusions are that the Malagasy franc has experienced significant misalignment in the past, but that the recent appreciation of the real effective exchange rate is consistent with changes in the fundamentals, particularly anticipated improvements in the net foreign assets position stemming from Madagascar's eligibility for assistance under the enhanced HIPC Initiative.

Estimation of a Behavioral Equilibrium Exchange Rate Model for Ghana
Estimation of a Behavioral Equilibrium Exchange Rate Model for Ghana

Author: Ms.Elena Loukoianova

Publisher: International Monetary Fund

Published: 2007-07-01

Total Pages: 23

ISBN-13: 1451867190

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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 the equilibrium path are eliminated within two to three years.

Republic of Madagascar
Republic of Madagascar

Author: International Monetary Fund

Publisher: International Monetary Fund

Published: 2005-09-27

Total Pages: 124

ISBN-13: 1451938616

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This Selected Issues paper and Statistical Appendix analyzes the relationship among prices, income, and money in Madagascar over the period 1982–2004. It finds that a stable long-run relationship for the price level exists, but that the adjustment toward this long-term equilibrium is quite slow. The paper presents an assessment of the real effective exchange rate. It also presents some qualitative competitiveness indicators and examines the performance of exports in Madagascar at an aggregate and product level.

Estimation of the Equilibrium Real Exchange Rate for Malawi
Estimation of the Equilibrium Real Exchange Rate for Malawi

Author: Mr.Johan Mathisen

Publisher: International Monetary Fund

Published: 2003-05-01

Total Pages: 26

ISBN-13: 1451852789

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This paper computes Malawi's equilibrium real exchange rate as a function of its fundamentals as derived from economic theory. It finds evidence in favor of the equilibrium approach to exchange rate determination, with several variables (particularly government consumption and real per capita growth) found to drive movements in the time-varying equilibrium real exchange rate. The results also indicate that following a shock there is a rapid reversion of the real exchange rate to its time-varying equilibrium, with a half-life of reversion of about 11 months.

Estimating Equilibrium Real Exchange Rates in the Franc Zone
Estimating Equilibrium Real Exchange Rates in the Franc Zone

Author: Simeon Coleman

Publisher:

Published: 2010

Total Pages:

ISBN-13:

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This paper estimates the degree of real exchange rate misalignment in 12 CFA (Communauteacute; Financiegrave;re Africaine) franc zone countries over the period 1960-99. Allowing for contemporaneous error co-variances, due to observed cross-sectional dependence, we use seemingly unrelated regressions equation estimations to estimate the equilibrium real effective exchange rate and degree of misalignment in each country. We find significant differences across member-states, however, the largest economies-Cameroon, Cocirc;te d'Ivoire and Senegal-showed some striking similarities. Just prior to the 1994 devaluation, these three economies were much more overvalued compared with the smaller member-states, some of which were either marginally misaligned or virtually in equilibrium. In 1994, only Cocirc;te d'Ivoire is exactly in equilibrium as a result of the devaluation. Our analysis of misalignment for the period after 1994 suggests that some challenges lie ahead for the CFA franc zone, if fixed parity is to be maintained.

Estimation of a Behavioral Equilibrium Exchange Rate Model for Ghana
Estimation of a Behavioral Equilibrium Exchange Rate Model for Ghana

Author: Plamen Iossifov

Publisher:

Published: 2007

Total Pages: 28

ISBN-13:

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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 the equilibrium path are eliminated within two to three years

Regional Economic Outlook, Fall 2006, Sub-Saharan Africa, Supplement
Regional Economic Outlook, Fall 2006, Sub-Saharan Africa, Supplement

Author: International Monetary Fund. African Dept.

Publisher: International Monetary Fund

Published: 2006-05-03

Total Pages: 78

ISBN-13: 9781589065925

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Provides a broad synopsis of recent economic developments in the Middle East and Central Asia region, highlighting common trends and policies among countries in the region, and reviewing prospects and policies for the coming year. Includes a statistical appendix.

Regional Economic Outlook, October 2007, Sub-Saharan African
Regional Economic Outlook, October 2007, Sub-Saharan African

Author: International Monetary Fund. African Dept.

Publisher: International Monetary Fund

Published: 2007-10-15

Total Pages: 84

ISBN-13: 1589066707

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The region's prospects look strong. Growth in sub-Saharan Africa should reach 6 percent in 2007 and 63⁄4 percent in 2008. The economic expansion is strongest in oil exporters but cuts across all country groups. This would extend a period of very good performance. In recent years, sub-Saharan Africa has been experiencing its strongest growth and lowest inflation in over 30 years.