The Impact of Real Exchange Rate Misalignment and Instability on Macroeconomic Performance in Sub-Saharan Africa
No hay miniatura disponible
Fecha
Autores
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
This study investigates the relationship between indicators of macroeconomic performance and real exchange rate (RER) misalignment and instability in Sub-Saharan Africa (SSA). Three measures of RER misalignment are used. There is ample evidence that countries which have pursued more predictable macroeconomic policies and lower levels of RER misalignment have experienced better economic performance. Also, it appears that higher levels of misalignments in the RER are accompanied by higher levels of macroeconomic instability. Empirical support is found for Edwards' model of the equilibrium RER and black market premia tend to show a greater degree of misalignment than alternative measures.