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Australia and New Zealand Exchange Rates

Australia and New Zealand Exchange Rates
Main title
Australia and New Zealand Exchange Rates
electronic resource
Nature of contents
Oclc number
Series statement
IMF Working Papers
The paper describes three empirical models commonly used to conduct exchange rate assessments and applies them to data for Australia and New Zealand. The baseline results using data and mediumterm projections available as of October 2008, suggest that the Australian and New Zealand dollars were broadly in line with fundamentals, but with a wide variation across models. A battery of sensitivity tests illustrate that altering the underlying assumptions can yield substantially different assessments. The results are particularly sensitive to the choice of assessment horizon, the set of economies i
Table Of Contents
Contents; I. Introduction; II. Real Exchange Rate Developments; Figures; 1. Australia: Real Exchange Rate Developments; 2. New Zealand: Real Exchange Rate Developments; III. The Empirical Models; A. Country Coverage and Econometric Methodology; B. The Macroeconomic Balance Approach; Tables; 1. Estimation Results for the Macroeconomic Balance Approach; C. The Equilibrium Real Exchange Rate Approach; 3. MB Approach: Estimated Contributions--Level and Change; 2. Estimation Results for the Equilibrium Real Exchange Rate Approach; D. The External Sustainability Approach4. ERER Approach: Esimated Contributions--Level and Change3. Estimation Results for the External Sustainability Approach; IV. Exchange Rate Assessments; A. Baseline Results; 5. ES Approach: Estimated Contributions--Level and Change; 4. Baseline Results: Quantitative Exchange Rate Assessments; B. Robustness Tests; 6. Confidence Intervals; 5. Sensitivity Analysis: Reference Data; 6. Sensitivity Analysis: MB Approach--CA Projection and Trade Elasticity; 7. Sensitivity Analysis: External Sustainability--NFA Norm; 8. Sensitivity Analysis: External Sustainability--Growth Rate9. Sensitivity Analysis: Assessment Period10. Sensitivity Analysis: Country Coverage; 11. Sensitivity Analysis: Estimation Method; V. Concluding Remarks; 7. Quantitative Exchange Rate Assessments: Summary; Appendixes; I. Dataset Description; II. Theoretical Framework; References