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IS THE DOLLAR REALLY UNDER‐VALUED?
Author(s) -
Greenslade Jenni
Publication year - 1995
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/j.1468-0319.1995.tb00036.x
Subject(s) - liberian dollar , economics , exchange rate , us dollar , econometrics , international economics , monetary economics , finance
In the second of tow articles focusing on the determinants of real exchange rates Jenni Greenslade and John Whitely look at estimates of “equilibrium” exchange rates derived from the FEER approach. They find evidence that the dollar is currently under‐valued but its equilibrium level is expected to depreciate in the future. Estimates of equilibrium rates are shown to be sensitive to assumptions about trade elasticities and the opening up of the service sectors in international trade.