{
  "title": "Estimation of the Equilibrium Real Exchange Rate for South Africa",
  "publication": "IMF Working Papers, March 1, 2003",
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  "summary": "Based on the Johansen cointegration estimation methodology, much of the long-run behavior of the real effective exchange rate of South Africa can be explained by real interest rate differentials, GDP per capita (both relative to trading partners), real commodity prices, trade openness, the fiscal ba",
  "sections": [
    {
      "heading": "Methodology",
      "content": "- Based on the Johansen cointegration estimation methodology.\n- Explains long-run behavior of the real effective exchange rate using a set of fundamentals."
    },
    {
      "heading": "Key findings",
      "content": "- Much of the long-run behavior of the real effective exchange rate of South Africa can be explained by:\n  - real interest rate differentials,\n  - GDP per capita (both relative to trading partners),\n  - real commodity prices,\n  - trade openness,\n  - the fiscal balance,\n  - the extent of net foreign assets.\n- On the basis of these fundamentals, the real exchange rate in early 2002 was found to be significantly more depreciated with respect to the estimated equilibrium level.\n- The half-life of the deviation of the real exchange rate from the estimated equilibrium one was found to be somewhat more than two years."
    },
    {
      "heading": "Scope and topics",
      "content": "- Subjects: Commodity prices; External position; Financial services; Foreign assets; Foreign exchange; Prices; Real effective exchange rates; Real exchange rates; Real interest rates.\n- Keywords: Africa; commodity; commodity exporter; Commodity prices; equilibrium exchange rate; equilibrium real exchange rate; exchange rate; explanatory variables; Foreign assets; price; price equalization; productivity differential; Real effective exchange rates; Real exchange rates; real interest rate differential; Real interest rates; trading partner; vis-à-vis trading-partner country; WP.\n\nRonald MacDonald, Luca A Ricci. \"Estimation of the Equilibrium Real Exchange Rate for South Africa\", IMF Working Papers 2003, 044 (2003), March 1, 2003.\n\n---\n\n Content in this bundle\n\n- Estimation of the Equilibrium Real Exchange Rate for South Africa - WP/03/44\n  - Estimation of the Equilibrium Real Exchange Rate for South Africa - WP/03/44 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Estimation of the Equilibrium Real Exchange Rate for South Africa - WP/03/44 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/estimation-of-the-equilibrium-real-exchange-rate-for-south-africa-16340"
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    "Authors: Ronald MacDonald, Luca A Ricci",
    "Published: March 1, 2003",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451846430.001",
    "Based on the Johansen cointegration estimation methodology.",
    "Explains long-run behavior of the real effective exchange rate using a set of fundamentals.",
    "Much of the long-run behavior of the real effective exchange rate of South Africa can be explained by:",
    "On the basis of these fundamentals, the real exchange rate in early 2002 was found to be significantly more depreciated with respect to the estimated equilibrium level.",
    "The half-life of the deviation of the real exchange rate from the estimated equilibrium one was found to be somewhat more than two years.",
    "Subjects: Commodity prices; External position; Financial services; Foreign assets; Foreign exchange; Prices; Real effective exchange rates; Real exchange rates; Real interest rates.",
    "Keywords: Africa; commodity; commodity exporter; Commodity prices; equilibrium exchange rate; equilibrium real exchange rate; exchange rate; explanatory variables; Foreign assets; price; price equalization; productivity differential; Real effective exchange rates; Real exchange rates; real interest rate differential; Real interest rates; trading partner; vis-à-vis trading-partner country; WP.",
    "**Estimation of the Equilibrium Real Exchange Rate for South Africa - WP/03/44**"
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