
The literature on exchange rate misalignments is very extensive as well as the literature on exchange rate determinants. To our knowledge, however, no study has analyzed the determinants of exchange rate misalignments. As huge capital inflows have been pouring into emerging countries since the climax of the crisis, exchange rate misalignments are becoming a crucial issue for policy makers. For a large panel of emerging and industrialized countries and on the period 1982-2008, we identify, empirically, the main determinants of exchange rate misalignments obtained thanks to a FEER approach (Williamson, 1994). Our analysis put forward trade openness, financial openness and regional specialization as determinant variables of exchange rate misalignments.
JEL: O - Economic Development, 330, Exchange rate regime, Trade openness, Exchange rate misalignments, and Growth/O.O1 - Economic Development/O.O1.O11 - Macroeconomic Analyses of Economic Development, Sciences de l'Homme et Société/Economies et finances, Exchange rate misalignments; Trade openness; International specialization; Exchange rate regime; Financial liberalization, JEL: F - International Economics/F.F3 - International Finance/F.F3.F32 - Current Account Adjustment • Short-Term Capital Movements, Innovation, International specialization, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Financial liberalization, JEL: F - International Economics/F.F3 - International Finance/F.F3.F31 - Foreign Exchange, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Technological Change, Exchange rate misalignments,Trade openness,International specialization,Exchange rate regime,Financial liberalization, Exchange Rate Misalignments; Trade Openness; Financial Openness; Regional Specialization., jel: jel:F31, jel: jel:F32, jel: jel:O11
JEL: O - Economic Development, 330, Exchange rate regime, Trade openness, Exchange rate misalignments, and Growth/O.O1 - Economic Development/O.O1.O11 - Macroeconomic Analyses of Economic Development, Sciences de l'Homme et Société/Economies et finances, Exchange rate misalignments; Trade openness; International specialization; Exchange rate regime; Financial liberalization, JEL: F - International Economics/F.F3 - International Finance/F.F3.F32 - Current Account Adjustment • Short-Term Capital Movements, Innovation, International specialization, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Financial liberalization, JEL: F - International Economics/F.F3 - International Finance/F.F3.F31 - Foreign Exchange, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Technological Change, Exchange rate misalignments,Trade openness,International specialization,Exchange rate regime,Financial liberalization, Exchange Rate Misalignments; Trade Openness; Financial Openness; Regional Specialization., jel: jel:F31, jel: jel:F32, jel: jel:O11
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