Exchange Rate Misalignment and Its Relationship to Output Growth in South Africa

Nguyen, Ha

World Bank, Washington, DC

关键词: EXCHANGE RATES;    ECONOMIC GROWTH;    PURCHASING POWER PARITY;    TERMS OF TRADE;   

RP-ID  :  127307

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper establishes a simpletheory-based real exchange rate (RER) Misalignment Index forcountries around the world from 1950-2014, and shows thatSouth Africa’s RER has been undervalued over the lastdecade. For the most recent year of 2014, depending on theproxy for productivity, it is undervalued from about 15percent to 18 percent. The analysis suggests that terms oftrade fluctuations explain a large part of theundervaluation. This study is a background note for theSouth Africa Systematic Country Diagnostic.