CEPII, Recherche et Expertise sur l'economie mondiale
Currency Misalignments and Exchange Rate Regimes in Emerging and Developing Countries

Virginie Coudert
Cécile Couharde

 Points clés :

 Résumé :
Pegged exchange rates are often pointed out as more prone to risk of overvaluation, because their real exchange rates have a tendency to appreciate. We check this assumption empirically over a large sample of emerging and developing countries, by using two databases for de facto classifications by Levy-Yeyati and Sturzenegger (2003) and by Reinhart and Rogoff (2004). We assess currency misalignments by estimating real equilibrium exchange rates taking into account a Balassa effect and the impact of net foreign assets. Pegged currencies are shown to be more overvalued than floating ones.

 Mots-clés : Exchange rate regimes | emerging and developing countries | misalignments

 JEL : F31, F33
CEPII Working Paper
N°2008-07, April 2008

Résumés non-techniques

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 Domaines d'expertise

Monnaie & Finance