Sossounov, Kirill and Ushakov, Nikolay (2009): Determination of the real exchange rate of rouble and assessment of longrum policy of real exchange rate targeting. Forthcoming in: Journal of the New Economic Association No. 2

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Abstract
The equilibrium real exchange rate of Russian ruble is estimated for the period from the beginning of 1995 to the beginning of 2008. According to the methodological approach proposed by Edwards (1988) the equilibrium real exchange rate is a function of a set of fundamental variables (socalled “reduced form equation”). In order to estimate an equilibrium real exchange rate a set of fundamentals was selected: terms of trade, productivity differential, fiscal policy variable. Estimation was performed in a cointegrated VAR framework using the Johansen cointegration test. The speed of adjustment of the actual real exchange rate to the equilibrium real exchange rate as well as the influence of monetary policy and private capital flows on the shortrun dynamics of real exchange rate is explored.
Item Type:  MPRA Paper 

Original Title:  Determination of the real exchange rate of rouble and assessment of longrum policy of real exchange rate targeting 
English Title:  Determination of the real exchange rate of rouble and assessment of longrum policy of real exchange rate targeting 
Language:  English 
Keywords:  macroeconomics, real exchange rate, Russia 
Subjects:  C  Mathematical and Quantitative Methods > C5  Econometric Modeling > C51  Model Construction and Estimation E  Macroeconomics and Monetary Economics > E0  General > E00  General 
Item ID:  18549 
Depositing User:  kirill sosunov 
Date Deposited:  12 Nov 2009 17:42 
Last Modified:  29 Sep 2019 09:43 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/18549 