TY  - BOOK
AU  - Tsangarides,Charalambos G.
AU  - Abdih,Yasser
AU  - Tsangarides,Charalambos G.
TI  - FEER for the CFA Franc
T2  - IMF Working Papers; Working Paper
SN  - 1451864965 :
SN  - 1018-5941
PY  - 2006///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - CEMAC
KW  - imf
KW  - Cointegration
KW  - Effective Exchange Rate
KW  - Equilibrium Real Exchange Rate
KW  - Exchange Rate
KW  - Feer
KW  - Cameroon
KW  - Central African Republic
KW  - Equatorial Guinea
KW  - France
KW  - Guinea
N2  - We apply the fundamentals equilibrium exchange rate (FEER) approach and the Johansen cointegration methodology to investigate the behavior of the real effective exchange rates of the two monetary unions of the CFA franc zone (CEMAC and WAEMU) vis-à-vis their long-run equilibrium paths. For both CEMAC and WAEMU, our results indicate that: (i) the fundamentals account for most of the fluctuation of the real effective exchange rates, with increases in the terms of trade, government consumption, and productivity improvements causing the exchange rate to appreciate, and increases in investment and openness leading to a depreciation; (ii) at end-2005 both the CEMAC and WAEMU real effective exchange rates were broadly in line with their long-run equilibrium values; and (iii) following a shock, reversion to equilibrium is twice as fast in WAEMU than in CEMAC
UR  - http://elibrary.imf.org/view/IMF001/02304-9781451864960/02304-9781451864960/02304-9781451864960.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451864960
ER  -