| Description |
1 online resource (28 pages) : color illustrations |
| Series |
IMF working paper, 1018-5941 ; WP/15/26 |
|
IMF working paper ; WP/15/26
|
| Contents |
Cover; Abstract; Contents; I. Introduction; II. Theoretical Framework; III. Empirical Model and Data Description; IV. Estimation Method and Results; A. Estimation method; B. Is the nuevo sol a commodity currency?; C. Identifying the drivers of the equilibrium real exchange rate; D. Is the real effective exchange rate misaligned?; V. Concluding Remarks; Appendix: Tables; Appendix: Figure; References |
| Summary |
This paper tests the hypothesis of 'commodity currency' on the nuevo sol and, more generally, identifies the drivers of Peru's equilibrium real exchange rate using a cointegration analysis. The results show that export commodity prices do not have a statistically significant impact on Peru's real effective exchange rate, suggesting that the nuevo sol is not a commodity currency. The paper provides empirical evidence that large profit repatriation and foreign exchange intervention have effectively insulated Peru's real exchange rate from the impact of commodity price shocks. Peru's equilibrium real exchange rate is found to be driven mostly by productivity and government consumption.--Abstract |
| Notes |
"February 2015." |
|
"Western Hemisphere Department." |
| Bibliography |
Includes bibliographical references (pages 26-27) |
| Notes |
Online resource; title from pdf title page (IMF.org Web site, viewed February 12, 2015) |
| Subject |
Foreign exchange rates -- Peru
|
|
Foreign exchange market -- Peru
|
|
Prices -- Peru
|
|
Foreign exchange market
|
|
Foreign exchange rates
|
|
Prices
|
|
Peru
|
| Form |
Electronic book
|
| Author |
International Monetary Fund. Western Hemisphere Department
|
| ISBN |
1498302769 |
|
9781498302760 |
|
