In spite of the attention paid exchange rates in recent economic debates on developing countries, relatively few studies have systematically analyzed in detail

This article analyzes the theory of equilibrium real exchange rates and defines misalignment as a deviation of the real exchange rate (RER) from its equilibrium

We show that the response of firm-level investment to real exchange rate movements varies depending on the production structure of the economy. Firms in advance

Government spending on infrastructure has recently increased sharply in many emerging-market economies. This paper examines the mechanism through which public i

The paper reviews recent theoretical and empirical developments in the analysis of informal currency markets in developing countries. The basic characteristics