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Exchange Rate Misalignment: Causes and Consequences

Exchange Rate Misalignment: Causes and Consequences

Paperback

Business General

ISBN10: 3836498197
ISBN13: 9783836498197
Publisher: Vdm Verlag
Published: Jul 31 2008
Pages: 68
Weight: 0.23
Height: 0.14 Width: 6.00 Depth: 9.00
Language: English
This work explores the area of exchange rate misalignment, exploiting the power of panel data to generate estimates. These estimates are used to tackle important questions of interest to policy makers. Specifically, the book begins by addressing the link between exchange rate misalignment and the choice of exchange rate regime for a country. In an era where currency crises are recurring, the choice of regime may have some role to play in limiting misalignment and thereby preventing or diminishing the severity of crises. The role that exchange rate regime plays differs for developed versus developing countries, which is also discussed in the book. Finally, the impact that misalignment can have on economic growth in general is explored. A distinction is made between undervaluation and overvaluation, and temporary versus persistent misalignment.

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Business General