Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/68063
Authors: 
Gente, Karine
León-Ledesma, Miguel A.
Year of Publication: 
2004
Series/Report no.: 
Department of Economics Discussion Paper, University of Kent 04,05
Abstract: 
We analyse the consequences of US real interest rate rises on the real exchange rate (RER) in a two-good overlapping generations model of a semi-small open economy. The equilibrium RER depreciates (appreciates) when the world interest rate increases in a debtor (creditor) country. We then study empirically the reaction of the RER in a set of South East Asian (SEA) countries to shocks in US real interest rates. The results support the conclusions of the theory model at least for Singapore, Thailand and South Korea during the period 1980-2001.
Subjects: 
Real exchange rate
overlapping generations
world interest rate shock
JEL: 
D91
F31
F41
Document Type: 
Working Paper

Files in This Item:
File
Size
441.14 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.