The exchange rate is a crucial variable linking a nation's domestic economy to the international market. Thus choice of an exchange rate regime is a central com

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

Using recent advances in the classification of exchange rate regimes, this paper finds no support for the popular bipolar view that countries will tend over tim

The study cautiously identifies exchange rate misalignment as an important element in most of the exchange rate crises that plagued the developing world during