Determinants of Venezuela’s Equilibrium Real Exchange Rate / / Juan Zalduendo

• Autore: Zalduendo Juan
• Pubblicazione: Washington, D.C. : , : International Monetary Fund, , 2006
• Descrizione fisica: 1 online resource (19 p.)
• Soggetto topico: Foreign exchange rates - Venezuela - Econometric models; Foreign exchange - Venezuela; Foreign Exchange; Macroeconomics; Energy: Demand and Supply; Prices; Currency; Foreign exchange; Real exchange rates; Oil prices; Real effective exchange rates; Multiple currency practices; Exchange rates
• Soggetto geografico: Venezuela, República Bolivariana de
• Note generali: "March 2006."
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: ""Contents""; ""I. INTRODUCTION""; ""II. THE FRAMEWORK""; ""III. ADJUSTING FOR THE PARALLEL EXCHANGE MARKET""; ""IV. ASSESSMENT OF OVER- OR UNDER-VALUATION""; ""V. CONCLUSIONS""; ""References""
• Sommario/riassunto: The Venezuelan Bolivar is pegged to the U.S. dollar and supported by foreign exchange restrictions. To assess the appropriateness of the peg during the current period of high oil export earnings and the likely consequences of a liberalization, this paper attempts to disentangle the effects of oil prices from other factors underlying the equilibrium real exchange rate, and examines the role of foreign exchange controls by extending the application of a vector error correction (VEC) model to parallel market exchange rates. Several findings are worth noting. First, oil prices have indeed played a significant role in determining a time-varying equilibrium real exchange rate path. Second, oil prices are not the only important determinant of the real effective exchange rate: declining productivity is also a key factor. Third, appreciation pressures are rising. Finally, the speed of convergence of a VEC model using parallel rather than official rates is higher, suggesting that the government has been able to maintain sharp deviations between the official and equilibrium rates because of Venezuela's oil dependency and the concentration of oil income in government hands.
• Titolo autorizzato: Determinants of Venezuela’s Equilibrium Real Exchange Rate
• ISBN: 1-4623-0037-5; 1-4527-0676-X; 1-283-51366-8; 9786613826114; 1-4519-0870-9
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910788412003321
• Lo trovi qui: Univ. Federico II
• Serie: IMF Working Papers; Working Paper ; ; No. 2006/074