Exchange Rate Misalignments at World and European Levels: A FEER Approach

CEPN Working Papers No. 2010-03

53 Pages Posted: 26 Sep 2011 Last revised: 13 Nov 2017

See all articles by Seeun Jeong

Seeun Jeong

Chungnam National University - Department of International Economics

Jacques Mazier

University of Angers - Centre d'économie de l'Université de Paris Nord (CEPN)

Jamel Saadaoui

University of Strasbourg

Date Written: March 27, 2010

Abstract

Since the mid-1990s, we observe an increase of world current account imbalances. These imbalances have only been partially reduced since the burst of the crisis in 2007. They reflect, to some extent, exchange rate misalignments, an issue which has been frequently studied in the literature. However, these imbalances, which have reinforced in the 2000s, are also important inside the Euro area. This analysis cannot be reduced to simple estimates of euro misalignment at the world level because of the specific constraints that exist for each member of the Euro area. This article aims to examine to what extent the intra-European imbalances reflect exchange rate misalignments for each “national euro”.

Keywords: Equilibrium Exchange Rate, Current Account Balance, Macroeconomic Balance

JEL Classification: F31, F32

Suggested Citation

Jeong, Seeun and Mazier, Jacques and Saadaoui, Jamel, Exchange Rate Misalignments at World and European Levels: A FEER Approach (March 27, 2010). CEPN Working Papers No. 2010-03. Available at SSRN: https://ssrn.com/abstract=1933260 or http://dx.doi.org/10.2139/ssrn.1933260

Seeun Jeong

Chungnam National University - Department of International Economics ( email )

Daejon, 34134
Korea, Republic of (South Korea)

Jacques Mazier

University of Angers - Centre d'économie de l'Université de Paris Nord (CEPN)

UMR7115
Université Paris-Nord
Paris XIII
France

Jamel Saadaoui (Contact Author)

University of Strasbourg ( email )

61 Avenue de la Forêt Noire
Strasbourg, Alsace 67000
France

HOME PAGE: http://www.jamelsaadaoui.com/

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