On the Determinants of Exchange Rate Misalignments

Applied Economics Letters 20(18), pp. 1608-1610, 2013. DOI: 10.1080/13504851.2013.829189

12 Pages Posted: 24 Jun 2019

See all articles by Jamel Saadaoui

Jamel Saadaoui

University of Strasbourg

Jacques Mazier

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

Nabil Aflouk

CEPN (CNRS - UMR 7115)

Date Written: August 27, 2014

Abstract

The literature on exchange rate misalignments is very extensive as well as the literature on exchange rate determinants. To our knowledge, however, no study has analyzed the determinants of exchange rate misalignments. As huge capital inflows have been pouring into emerging countries since the climax of the crisis, exchange rate misalignments are becoming a crucial issue for policy makers. For a large panel of emerging and industrialized countries and on the period 1982-2008, we identify, empirically, the main determinants of exchange rate misalignments obtained thanks to a FEER approach (Williamson, 1994). Our analysis put forward trade openness, financial openness and regional specialization as determinant variables of exchange rate misalignments.

Keywords: Exchange Rate Misalignments, Trade Openness, Financial Openness, Regional Specialization

JEL Classification: F31, F32, O11

Suggested Citation

Saadaoui, Jamel and Mazier, Jacques and Aflouk, Nabil, On the Determinants of Exchange Rate Misalignments (August 27, 2014). Applied Economics Letters 20(18), pp. 1608-1610, 2013. DOI: 10.1080/13504851.2013.829189. Available at SSRN: https://ssrn.com/abstract=3405807 or http://dx.doi.org/10.2139/ssrn.3405807

Jamel Saadaoui (Contact Author)

University of Strasbourg ( email )

61 Avenue de la Forêt Noire
Strasbourg, Alsace 67000
France

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

Jacques Mazier

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

UMR7115
Université Paris-Nord
Paris XIII
France

Nabil Aflouk

CEPN (CNRS - UMR 7115) ( email )

99 Av. Jean-Baptiste Clément
Villetaneuse, 93430
France

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