Nominal and real devaluations relationship under flexible exchange rate for Paraguay
Article
Shahbaz, Muhammad, Rahman, Mohammad Mafizur 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.
Article Title | Nominal and real devaluations relationship under flexible exchange rate for Paraguay |
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ERA Journal ID | 18495 |
Article Category | Article |
Authors | Shahbaz, Muhammad (Author), Rahman, Mohammad Mafizur (Author) and Ahmad, Khalil (Author) |
Journal Title | African Journal of Business and Economic Research |
Journal Citation | 5 (2-3), pp. 6-26 |
Number of Pages | 21 |
Year | 2010 |
Place of Publication | London, United Kingdom |
ISSN | 1750-4554 |
1750-4562 | |
Web Address (URL) | http://www.adonis-abbey.com |
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. |
Keywords | nominal and real devaluations; flexible exchange rate; Paraguay |
ANZSRC Field of Research 2020 | 350208. Investment and risk management |
380110. International economics | |
380112. Macroeconomics (incl. monetary and fiscal theory) | |
Byline Affiliations | COMSATS University Islamabad, Pakistan |
School of Accounting, Economics and Finance | |
Government Postgraduate College, Pakistan | |
Institution of Origin | University of Southern Queensland |
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