Long run real exchange rates: evidence from Mexico

Authors
Kakkar, V
Citation
V. Kakkar, Long run real exchange rates: evidence from Mexico, ECON LETT, 72(1), 2001, pp. 79-85
Citations number
13
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
72
Issue
1
Year of publication
2001
Pages
79 - 85
Database
ISI
SICI code
0165-1765(200107)72:1<79:LRRERE>2.0.ZU;2-T
Abstract
This paper studies the behavior of the Mexican-US bilateral real exchange r ate from 1955 to 1996. Evidence suggests that this real exchange rate is co integrated with the Mexican and US relative price of nontradables. This coi ntegrating relationship provides a natural basis for measuring long run rea l exchange rate misalignment. (C) 2001 Elsevier Science B.V. All rights res erved.