Malawi Selected Issues And Statistical Appendix

Download or read book Malawi: Selected Issues and Statistical Appendix written by International Monetary Fund and published by INTERNATIONAL MONETARY FUND. This book was released on 2002-08-16 with total page 95 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Selected Issues paper estimates the path of the equilibrium real exchange for Malawi. Based on a dynamic model of a small open economy, the paper identifies and discusses the dynamics between certain fundamental variables and the real exchange rate. It also investigates the presence of a long-term relationship between the real exchange rate and the explanatory variables, and estimates both the equilibrium real exchange rate and the speed at which it converges toward its equilibrium level. The paper also discusses episodes of discrepancies between the real effective exchange rate and its equilibrium level.