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Tipo de cambio real en la República Dominicana: Enfoques alternativos de equilibrio y desalineamiento

Cruz-Rodríguez, Alexis (2015): Tipo de cambio real en la República Dominicana: Enfoques alternativos de equilibrio y desalineamiento.

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Abstract

This article has two main objectives. First, estimate the real equilibrium exchange rate (REER) of the Dominican Republic, and second, to determine the misalignment, if any, between the observed real exchange rate (RER) and its equilibrium level. To carry out the analysis six different measurements and six measures of REER of misalignment were used. The empirical results indicate that in the 50s, 60s, 90s and the first decade of the 2000s there was an overvaluation, while in the 70s and 80s there was an undervaluation of the RER. Between the years 2010-2013 the RER stood very close to its long term equilibrium level. However, misalignment and magnitude have different responses depending on the methodology used to estimate the REER.

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