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External Performance in Low-Income Countries by Alessandro Prati
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Assessments of exchange rate misalignments and external imbalances for low-income countries are challenging because methodologies developed for advanced and emerging economies cannot be automatically applied to poorer nations. This paper uses a large database, unique in the set of indicators and number of countries it covers, to estimate the relationship in low-income countries between a set of fundamentals in the medium to long term and the real effective exchange rate, the current account, and the net external assets position.
International Monetary Fund; February 2011
71 pages; ISBN 9781462390915
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Title: External Performance in Low-Income Countries
Author: Alessandro Prati; Luca Antonio Ricci; Lone Engbo Christiansen; Stephen Tokarick; Thierry Tressel