Exchange Rate Assessments: Methodologies for Oil Exporting Countries
IMF Working Papers, December 1, 2009
Source details
- Canonical URL
- Exchange Rate Assessments: Methodologies for Oil Exporting Countries
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Bibliographic details
- Authors: Irineu E de Carvalho Filho, Rudolfs Bems
- Published: December 1, 2009
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451874266.001
Overview and Purpose
- Authors: Irineu E de Carvalho Filho, Rudolfs Bems
- Publication date: December 1, 2009
- Objective: Develop methodologies tailored to oil-exporting countries to assess whether current account fluctuations are "excessive" and how the real exchange rate should respond to external and domestic fundamentals.
Key Findings
- Price-based methodologies (based on the time series of real effective exchange rates):
- Identify a strong link between the real exchange rate and the terms of trade.
- Have relatively limited explanatory power.
- Empirical model of the current account:
- Fits oil-exporting countries' data well.
- Provides a useful benchmark for assessing external balances.
- Intertemporal model incorporating the stock of oil reserves:
- Provides useful benchmarks for oil exporters' external balances.
Subject Areas and Keywords
- Subject: Current account, Current account balance, Oil, Personal income, Real exchange rates
- Keywords: growth rate, oil exporter, oil-exporting country, terms of trade, WP