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On the Determinants of Exchange Rate Misalignments

Author

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  • Jamel Saadaoui

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

  • Jacques Mazier

    (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique)

  • Nabil Aflouk

    (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique)

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.

Suggested Citation

  • Jamel Saadaoui & Jacques Mazier & Nabil Aflouk, 2013. "On the Determinants of Exchange Rate Misalignments," Post-Print halshs-00829460, HAL.
    • Handle: RePEc:hal:journl:halshs-00829460
    DOI: 10.1080/13504851.2013.829189
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00829460v3
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    References listed on IDEAS

    as
    1. Seeun Jeong & Jacques Mazier & Jamel Saadaoui, 2010. "Exchange Rate Misalignments at World and European Levels : A FEER Approach," Post-Print hal-02169238, HAL.
    2. Se-Eun Jeong & Jacques Mazier & Jamel Saadaoui, 2010. "Exchange Rate Misalignments at World and European Levels: a FEER Approach," International Economics, CEPII research center, issue 121, pages 25-58.
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    11. Jamel Saadaoui, 2011. "Exchange Rate Dynamics and Fundamental Equilibrium Exchange Rates," Economics Bulletin, AccessEcon, vol. 31(3), pages 1993-2005.
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    21. Se-Eun Jeong & Jacques Mazier, 2003. "Exchange Rate Regimes and Equilibrium Exchange Rates in East Asia," Revue économique, Presses de Sciences-Po, vol. 54(5), pages 1161-1182.
    22. Nabil Aflouk & Se-Eun Jeong & Jacques Mazier & Jamel Saadaoui, 2010. "Exchange Rate Misalignments and International Imbalances a FEER Approach for Emerging Countries," International Economics, CEPII research center, issue 124, pages 31-74.
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    25. Jamel Saadaoui, 2013. "Global Imbalances and Capital Account Openness: an Empirical Analysis," Post-Print halshs-00861161, HAL.
    26. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
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    Cited by:

    1. Issiaka Coulibaly, 2014. "Competitiveness and growth within the CFA franc zone: Does the switch to the Euro matter?," International Economics, CEPII research center, issue 139, pages 1-18.
    2. Jamel Saadaoui, 2016. "Post-Brexit FEER," Working Papers of BETA 2016-51, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Slimani, Slah & Ben allem, Khaoula, 2017. "Les déterminants du misalignement du taux de change réel : Analyse empirique pour le cas de la région MENA [Determinants of misalignment of the real exchange rate: An empirical analysis for the MEN," MPRA Paper 81247, University Library of Munich, Germany.
    4. Jamel Saadaoui, 2017. "Internal Devaluations and Equilibrium Exchange Rates: New Evidences and Perspectives for the EMU," Working Papers halshs-01633389, HAL.
    5. Muhammad Ali Nasir & Mary Leung, 2021. "US trade deficit, a reality check: New evidence incorporating asymmetric and non‐linear effects of exchange rate dynamics," The World Economy, Wiley Blackwell, vol. 44(3), pages 818-836, March.
    6. Jamel Saadaoui, 2018. "Internal Devaluations and Equilibrium Exchange Rates: new evidences and perspectives for the EMU," Post-Print hal-02168395, HAL.
    7. repec:hal:cepnwp:hal-01394814 is not listed on IDEAS
    8. repec:cii:cepiei:2015-q1-141-8 is not listed on IDEAS
    9. Slimani, Slah & Ben Allem, Khawla, 2018. "Determinants of real exchange rate misalignment: An empirical analysis for MENA region," MPRA Paper 91605, University Library of Munich, Germany.
    10. Jamel Saadaoui, 2016. "Post-Brexit FEER," Working Papers hal-01394814, HAL.
    11. Jebeniani, Jihene & Trabelsi, Jamel, 2022. "Effects of the business cycle on real exchange rate misalignments with respect to exchange rate regimes," International Economics, Elsevier, vol. 170(C), pages 92-102.
    12. Jamel Saadaoui, 2017. "Internal Devaluations and Equilibrium Exchange Rates: New Evidences and Perspectives for the EMU," CEPN Working Papers halshs-01633389, HAL.
    13. Jamel Saadaoui, 2016. "Sur la situation des mésalignements de taux de change après le Brexit," Post-Print hal-02453601, HAL.

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    More about this item

    Keywords

    Exchange rate misalignments; Trade openness; International specialization; Exchange rate regime; Financial liberalization;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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