Nominal and real devaluations relationship under flexible exchange rate for Paraguay

Shahbaz, Muhammad and Rahman, Mohammad Mafizur ORCID: https://orcid.org/0000-0002-7950-1961 and Ahmad, Khalil (2010) Nominal and real devaluations relationship under flexible exchange rate for Paraguay. African Journal of Business and Economic Research, 5 (2-3). pp. 6-26. ISSN 1750-4554


Abstract

This paper aims to explore the correlation between nominal devaluation and real devaluation in case of Paraguay. In doing so, we have used log-linear specification to investigate the relationship between the variables and have employed some sophisticated tests such as Ng-Perron unit root test, ARDL, DOLS tests for the long run association. The findings of the study with Paraguay monthly data suggest that not only in the long run, but also in the short run, nominal devaluation leads to real devaluation.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Although the publication year is 2010, the paper is actually published in March 2011. The journal is a bit late in publication.
Faculty/School / Institute/Centre: Historic - Faculty of Business - School of Accounting, Economics and Finance (1 Apr 2007 - 31 Dec 2010)
Faculty/School / Institute/Centre: Historic - Faculty of Business - School of Accounting, Economics and Finance (1 Apr 2007 - 31 Dec 2010)
Date Deposited: 14 Mar 2011 23:10
Last Modified: 03 Jul 2013 00:33
Uncontrolled Keywords: nominal and real devaluations; flexible exchange rate; Paraguay
Fields of Research (2008): 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management
14 Economics > 1402 Applied Economics > 140210 International Economics and International Finance
14 Economics > 1402 Applied Economics > 140212 Macroeconomics (incl. Monetary and Fiscal Theory)
Fields of Research (2020): 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350208 Investment and risk management
38 ECONOMICS > 3801 Applied economics > 380110 International economics
38 ECONOMICS > 3801 Applied economics > 380112 Macroeconomics (incl. monetary and fiscal theory)
Socio-Economic Objectives (2008): B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910104 Exchange Rates
URI: http://eprints.usq.edu.au/id/eprint/18665

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