01740cas a2200253 a 4500 AALejournalIMF002307 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451846430 1018-5941 BD-DhAAL BD-DhAAL MacDonald, Ronald. Estimation of the Equilibrium Real Exchange Rate for South Africa / Ronald MacDonald, Luca Ricci. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (24 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Based on the Johansen cointegration estimation methodology, much of the long-run behavior of the real effective exchange rate of South Africa can be explained by real interest rate differentials, GDP per capita (both relative to trading partners), real commodity prices, trade openness, the fiscal balance, and the extent of net foreign assets. On the basis of these fundamentals, the real exchange rate in early 2002 was found to be significantly more depreciated with respect to the estimated equilibrium level. The half-life of the deviation of the real exchange rate from the estimated equilibrium one was found to be somewhat more than two years. Mode of access: Internet Ricci, Luca. IMF Working Papers; Working Paper ; No. 2003/044 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/044/001.2003.issue-044-en.xml IMF e-Library