Assessing Competitiveness and Real Exchange Rate Misalignment in Low-Income Countries

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  • Assessing Competitiveness and Real Exchange Rate Misalignment in Low-Income Countries Book Detail

  • Author : Gabriel Di Bella
  • Release Date : 2007-08
  • Publisher : International Monetary Fund
  • Genre : Business & Economics
  • Pages : 54
  • ISBN 13 :
  • File Size : 87,87 MB

Assessing Competitiveness and Real Exchange Rate Misalignment in Low-Income Countries by Gabriel Di Bella PDF Summary

Book Description: Assessing a country's competitiveness routinely starts with an analysis of the real exchange rate. However, in low-income countries, empirical analysis of the real exchange rate is often subject to important limitations that seriously weaken the results. This paper summarizes the methodologies used to assess real exchange rate misalignments and discusses the range of obstacles common to low-income countries. Recognizing the importance of using a wide range of indicators for assessing competitiveness in low-income countries, the paper discusses alternative competitive measures and then proposes a template of indicators to allow for a systematic assessment of competitiveness in low-income countries. The template is then used to rank countries according to their competitiveness performance in 2006.

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Exchange Rate Misalignment

Exchange Rate Misalignment

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The study cautiously identifies exchange rate misalignment as an important element in most of the exchange rate crises that plagued the developing world during