1.

Record Nr.

UNINA9910975154903321

Autore

Petri Martin

Titolo

To Smooth or Not to Smooth—The Impact of Grants and Remittances on the Equilibrium Real Exchange Rate in Jordan / / Martin Petri, Tahsin Saadi Sedik

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2006

ISBN

9786613825193

9781462352821

1462352820

9781452780405

1452780404

9781283512749

1283512742

9781451909708

1451909705

Edizione

[1st ed.]

Descrizione fisica

1 online resource (39 p.)

Collana

IMF Working Papers

Altri autori (Persone)

Saadi SedikTahsin

Soggetti

Foreign exchange rates - Jordan - Mathematical models

Emigrant remittances - Jordan - Mathematical models

Grants-in-aid - Jordan - Mathematical models

Smoothing (Numerical analysis)

Currency

Economic policy

Emigrant remittances

Empirical Studies of Trade

Exchange rates

Exports and Imports

Foreign Exchange

Foreign exchange

International economics

Nternational cooperation

Outward remittances

Real effective exchange rates

Real exchange rates

Remittances

Terms of trade

Jordan



Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"November 2006."

Nota di bibliografia

Includes bibliographical references (p. 35-37).

Nota di contenuto

""Contents""; ""I. INTRODUCTION""; ""II. DATA AND METHODOLOGY""; ""III. MODELING AND INTERPRETING THE EQUILIBRIUM REAL EXCHANGE RATE""; ""IV. ASSESSING THE EQUILIBRIUM REAL EXCHANGE RATE""; ""V. CONCLUSIONS""; ""Appendix: Methodological Problems with Smoothing""; ""REFERENCES""

Sommario/riassunto

This paper estimates the effect of grants and workers' remittances on Jordan's long-term equilibrium real exchange rate. We estimate an equilibrium path for the Jordanian real exchange rate using the Johansen cointegration methodology over the period 1964 to 2005. Controlling for other fundamentals, we find that both grants and workers' remittances appreciate the equilibrium real exchange rate in a statistically and economically significant way. We also find that assessing deviations of the actual real exchange rate from the estimated equilibrium real exchange rate is nontrivial because different smoothing methodologies and the nonsmoothed estimates give very different results.