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FEER for the CFA Franc [electronic resource] Tsangarides, Charalambos G..

Author/Creator:
Tsangarides, Charalambos G.
Publication:
Washington, D.C. : International Monetary Fund, 2006.
Format/Description:
Government document
Book
1 online resource (40 p.)
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 06/236.
IMF Working Papers; Working Paper No. 06/236
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Local subjects:
Adjustment path. (search)
Cointegration. (search)
Confidence interval. (search)
Constant term. (search)
Correlation. (search)
Covariance. (search)
Current account balance. (search)
Dual exchange rate. (search)
Dummy variable. (search)
Dummy variables. (search)
Econometrics. (search)
Economic models. (search)
Effective exchange rate. (search)
Effective exchange rates. (search)
Empirical estimation. (search)
Equation. (search)
Equations. (search)
Equilibrium equation. (search)
Equilibrium exchange rate. (search)
Exchange rate. (search)
Exchange rate action. (search)
Exchange rate adjustment. (search)
Exchange rate behavior. (search)
Exchange rate deviations. (search)
Exchange rate misalignment. (search)
Exchange rate movements. (search)
Exchange rate paths. (search)
Exchange rate policy. (search)
Exchange rate regimes. (search)
Exchange rate system. (search)
Exchange rates. (search)
Exchange rates index. (search)
Fixed exchange rate. (search)
Fixed exchange rate regimes. (search)
Fixed nominal exchange rate. (search)
Forecasting and Other Model Applications. (search)
Foreign Exchange. (search)
Hypothesis testing. (search)
Linear trend. (search)
Logarithm. (search)
Minimization. (search)
Nominal effective exchange rate. (search)
Nominal exchange rate. (search)
Open Economy Macroeconomics. (search)
Optimization. (search)
Outliers. (search)
Polynomial. (search)
Predictions. (search)
Probabilities. (search)
Probability. (search)
Random walks. (search)
Rate of change. (search)
Real effective exchange rate. (search)
Real effective exchange rates. (search)
Real exchange rate. (search)
Real exchange rate paths. (search)
Real exchange rate series. (search)
Real exchange rates. (search)
Sample size. (search)
Samples. (search)
Significance level. (search)
Significance levels. (search)
Simultaneous equation. (search)
Standard deviation. (search)
Standard deviations. (search)
Standard errors. (search)
Statistic. (search)
Statistical analysis. (search)
Statistical methodology. (search)
Statistical significance. (search)
Statistics. (search)
Time series. (search)
Time-Series Models. (search)
Cameroon. (search)
Central African Republic. (search)
Equatorial Guinea. (search)
France. (search)
Guinea. (search)
Guinea-Bissau. (search)
Senegal. (search)
Summary:
We apply the fundamentals equilibrium exchange rate (FEER) approach and the Johansen cointegration methodology to investigate the behavior of the real effective exchange rates of the two monetary unions of the CFA franc zone (CEMAC and WAEMU) vis-à-vis their long-run equilibrium paths. For both CEMAC and WAEMU, our results indicate that: (i) the fundamentals account for most of the fluctuation of the real effective exchange rates, with increases in the terms of trade, government consumption, and productivity improvements causing the exchange rate to appreciate, and increases in investment and openness leading to a depreciation; (ii) at end-2005 both the CEMAC and WAEMU real effective exchange rates were broadly in line with their long-run equilibrium values; and (iii) following a shock, reversion to equilibrium is twice as fast in WAEMU than in CEMAC.
Notes:
Description based on print version record.
Contributor:
Abdih, Yasser.
Tsangarides, Charalambos G.
Other format:
Print Version:
ISBN:
1451864965:
9781451864960
ISSN:
1018-5941
Publisher Number:
10.5089/9781451864960.001
Access Restriction:
Restricted for use by site license.