Munich Personal RePEc Archive

Real Exchange Rate Misalignment : concepts and measurement in the context of coronavirus crisis for developing countries as central African Republic knowing civil war

Kuikeu, Oscar (2021): Real Exchange Rate Misalignment : concepts and measurement in the context of coronavirus crisis for developing countries as central African Republic knowing civil war.

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Abstract

One of the most relevant economic subject during these last decades especially accompagned with the publication of Hinkle and Montiel (1999) on the related subject of Real Exchange Rate Misalignment has been the Operationalization of a well concept and Method to assess the effective size of Over/undervalued currency called in general Real Exchange Rate Misalignment. This assessment is Relevant in particular for selected African countries labelled as cfa franc area considering the influence and intense debate that accompagned the lessons learned from the collapse of an Oldest arrangement concerning currencies namely the fixed exchange rate system of Bretton Woods. Considering that since the Rejection of the ppp as norm for the RER the upcoming event of covid-19 crisis have necessarily engaged new prospect concerning the effectiveness of this measure this by weighting relatively some of fundamentals of the economy comparatively to the others, in the sense that the works of Edwards (1989) have demonstrated that the RER is well governed by economic phenomenom called fundamentals the aim of the present study is to show how the current covid-19 crisis have give new emphasis to the measurement of Real Exchange Rate Misalignment especially for the selected countries in the cfa franc area.

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