Determinants of Angola’s Parallel Market Real Exchange Rate
The paper estimates Angola's equilibrium parallel market real exchange rate during the 1992-98 period. Using standard integration/co-integration techniques, the results fail to support the purchasing power parity hypothesis and indicate that two exogenous variables-the price of oil and the foreign interest rate-are able to explain most of the variation in the real exchange rate during the last seven years. These results contrast with the tenet that the parallel market exchange rate in Angola is solely influenced by monetary developments.
READ MORE...
Volume/Issue:
Volume 1999
Issue 090
Publication date: July 1999
ISBN: 9781451851373
$20.00
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
| Paperback | ePub | Mobi | ||
| English |
Prices in red indicate formats that are not yet available but are forthcoming.
Topics covered in this book
This title contains information about the following subjects.
Click on a subject if you would like to see other titles with the same subjects.
Business and Economics , WP , price level , real exchange rates , co-integration , exchange rate specification , time-series properties , PPP hypothesis , adjustment coefficient , market rate , world interest rate , Purchasing power parity , Multiple currency practices , Exchange rates , Exchange rate assessments
Summary
The paper estimates Angola’s equilibrium parallel market real exchange rate during the 1992–98 period. Using standard integration/co-integration techniques, the results fail to support the purchasing power parity hypothesis and indicate that two exogenous variables—the price of oil and the foreign interest rate—are able to explain most of the variation in the real exchange rate during the last seven years. These results contrast with the tenet that the parallel market exchange rate in Angola is solely influenced by monetary developments.
Copyright © 2010 - 2026
Powered by:
AIDC