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The IMF and economic analysts take such real exchange rate fundamentals into account in estimating the "equilibrium" REER, around which the actual REER should hover if there is no misalignment.
This disparity suggests that an equilibrium exchange rate — assuming a return to normal economic conditions — would be approximately 91 per U.S. dollar, up from 74 in 2021, Rencap’s analysts ...
An RBI paper offers insights that have direct implications for India’s trade competitiveness, inflation and financial stability ...
As a consequence, even relatively modest shifts in international current account positions can lead to rather large changes in equilibrium exchange rates. The current situation, where global current ...
Given that the Big Mac in Uruguay costs Pesos 259, and in the US US$ 5,58, the implicit exchange rate is 46,42 Pesos, or the long term equilibrium price in the domestic market. In other words the ...
Japan's CAS, though low in 2013 and 2014, jumped to 2.9% of GDP in 2015. Cline (2016) has reported fundamental equilibrium exchange rates for East Asian economies and other countries. He found that, ...