Equilibrium Exchange Rate Estimation for Taka – A Co integration Analysis
Published By: BB on eSS | Published Date: May, 01 , 2015This
paper is an attempt to know the equilibrium exchange rate of Taka to measure exchange rate misalignment. To estimate
the equilibrium real exchange rate we use macroeconomic balance approach, which calculates the real exchange rate that is
consistent with internal and external balance. Using Johansen (1995) cointegration method we were able to find a long run
equilibrium relationship between exchange rate and fundamentals, which comprises of tot, openness, consgdp, remaid,
dsex.
Author(s): Md. Akhtaruzzaman, Luthfe Ara Begum | Posted on: Aug 11, 2015 | Views() | Download (688)