Real exchange rate and its fundamentals: estimation of misalignment
By Jesús Ferreyra ; Rafael Herrada
December 2003
Language: Spanish
Abstract
It compares two approaches: the FEER, which is the fundamental equilibrium real exchange rate that balances the current account with a sustainable level of capital, and the BEER, which involves a direct econometric analysis of a model of real exchange rate behavior, producing a measure of misalignment that differs from the FEER.