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NAMIBIA'S REAL EXCHANGE RATE PERFORMANCE 1
Author(s) -
Miyajima Ken
Publication year - 2009
Publication title -
south african journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.502
H-Index - 31
eISSN - 1813-6982
pISSN - 0038-2280
DOI - 10.1111/j.1813-6982.2009.01211.x
Subject(s) - depreciation (economics) , exchange rate , distributed lag , economics , us dollar , liberian dollar , autoregressive model , econometrics , lag , monetary economics , microeconomics , computer science , finance , financial capital , capital formation , computer network , profit (economics)
To assess Namibia's external competitiveness, this study estimates the country's equilibrium real exchange rate using the autoregressive distributed lag modelling approach that has superior small‐sample properties. The nominal depreciation of the Namibia dollar in 2002 created historically one of the largest deviations in the real exchange rate from its equilibrium level, but deviations are small at present. The half‐life of deviations from equilibrium is found to be about 1 year.