Long run real exchange rates : Evidence from Mexico

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Detail(s)

Original languageEnglish
Pages (from-to)79-85
Journal / PublicationEconomics Letters
Volume72
Issue number1
Publication statusPublished - Jul 2001

Abstract

This paper studies the behavior of the Mexican-US bilateral real exchange rate from 1955 to 1996. Evidence suggests that this real exchange rate is cointegrated with the Mexican and US relative price of nontradables. This cointegrating relationship provides a natural basis for measuring long run real exchange rate misalignment. © Elsevier Science B.V.

Research Area(s)

  • C22 (Time Series Models), Cointegration, F31 (Foreign Exchange), Nontradables, Purchasing power parity