Determinants of the Real Exchange Rate in Colombia. A neokeynesian Approach
Universidad Externado de Colombia - Department of Economics
Revista de Economia Institucional, Vol 4, December 2002
This article presents a model of real exchange rate using a neokeynesian approach, which is estimated with econometric methods of the English school. The empirical model is dynamic and respects the restrictions of the long run equilibrium between real exchange rate and macroeconomic fundamentals. It shows that the amount of appreciation and depreciation of the real exchange rate is determined by changes in terms of trade, openness of the economy, capital flows and acceleration of nominal devaluation. Public spending increases are not significant of the conventional levels of statistic confidence. Finally, the article evaluates if devaluation meets the requirements of weak, strong and super exogenity.
Note: The Downloadable document is in Spanish
Number of Pages in PDF File: 22
Keywords: real exchange rate, tradable goods, non-tradable goods, fundamentals, devaluation, equilibrium
JEL Classification: E12, E40Accepted Paper Series
Date posted: September 22, 2003
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo4 in 0.734 seconds