Determinants of the real exchange rate in the long-run for developing and emerging countries: a theoretical and empirical approach

Real exchange rate misalignments in developing countries: The role of exchange rate flexibility and capital account openness

“…The RER function specification in this study corresponds to the model discussed in the previous subsection that incorporates real fundamental factors represented by government expenditure, productivity, terms of trade, and trade openness (Edwards, 1989). To accommodate the influence of domestic and global monetary variables in the RER dynamics, the specification is enhanced with the inclusion of net foreign assets, financial sector openness, real interest rate gap between the domestic economy and the US, and domestic real interest rate (Barbosa et al, 2018 andKaltenbrunner, 2015). The model can be specified as follows (with the expected sign of the coefficients in brackets) 3 :…”

“…This approach is considered to be less prone to producing an inconsistent proxy of RER misalignment since the underlying determinants of the real exchange rate movement are mostly country-specific (Schröder, 2013). Third, for estimating the RER function, the determinants considered not only real fundamental variables as mostly postulated in the particular strand of literature but also variables relating to the financial sector (Rey, 2015;Barbosa et al, 2018;Kaltenbrunner, 2015). Finally, in generating the sustainable values of the fundamentals, a modified HP filter procedure that endogenously determines the most appropriate smoothing parameter based on individual data characteristics is applied (Hanif et al, 2017).…”

Income distribution, inflation and economic growth: A post-Keynesian approach

“…This equation, which resembles the Uncovered Interest Rate Parity (UIP), has an important difference in as much as it takes into account differences in liquidity premiums between currencies. According to Andrade and Prates (2013), Kaltenbrunner (2015) and Barbosa, Jayme Jr., and Missio (2018), the differences in quasi-rents, liquidity premium and the variation of expected exchange rate can be understood as a function of the role of each currency has in the IMS or their position in the monetary hierarchy. It seems quite evident that Equation (39) still do not take into consideration current account effects on the exchange rate.…”

“…Recently, there has been many interesting ways to do that, like in the Stock-Flow Consistent (SFC) model presented in Wynne Godley and Lavoie (2007) or through the introduction of Balassa-Samuelson (BS) effect in a post-Keynesian model like the one presented by Barbosa, Jayme Jr., and Missio (2018). In this paper we took another way.…”

Türkiye'nin Doğu Karadeniz Bölgesine Gelen Turistlerin Projeksiyonları

“…The tourism industry has proven to be a significant economic sector in recent decades, and many developing countries have prioritized tourism in their national economic policies (Barbosa, Jayme and Missio 2018;Giap, Gopalan and Ye 2016). According to recent statistics, tourist arrivals worldwide have shown a significant increase of 5%.…”