Stabilization, credibility and regime dependent real exchange rates

Prazmowski, Peter (2006) Stabilization, credibility and regime dependent real exchange rates. (Discussion Paper) Kingston upon Thames, U.K. : Faculty of Arts and Social Sciences, Kingston University. 36 p. (Economics Discussion Paper)

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Abstract

This paper studies a dynamic error correction model (ECM) highlighting the consequences of regime changes and of credibility on the performance of real exchange rates during stabilization. The analysis shows that the structural parameters of the ECM, from which an equilibrium real exchange rate is calculated, will be subject to structural breaks reflecting regime and credibility changes. Empirical evidence is presented on the Mexican 1988 and 1995 stabilization episodes.

Item Type: Monograph (Discussion Paper)
Physical Location: This book is held in stock at Kingston University Library.
Uncontrolled Keywords: equilibrium real exchange rates, inflation, ECM, Mexico
Research Area: Economics and econometrics
Faculty, School or Research Centre: Faculty of Arts and Social Sciences > School of Economics (until November 2012)
Depositing User: Susan Miles
Date Deposited: 05 Feb 2008
Last Modified: 16 Jul 2012 21:48
URI: http://eprints.kingston.ac.uk/id/eprint/1607

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