01980cas a2200265 a 4500 AALejournalIMF005742 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451872255 1018-5941 BD-DhAAL BD-DhAAL Pineda, Emilio. Assessing Exchange Rate Competitiveness in the Eastern Caribbean Currency Union / Emilio Pineda, Paul Cashin, Yan Sun. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (41 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 This paper uses three methods to assess movements of real exchange rates in the ECCU over time. First, the purchasing power parity hypothesis is tested and then used to provide a benchmark for equilibrium real exchange rates in the region. Second, a fundamentals-based equilibrium real exchange rate approach is used to explore sources of real exchange rate fluctuations in ECCU countries. And third, a macroeconomic balance approach is used to estimate equilibrium current account or current account "norms". The main finding of these analyses is that there is little evidence of overvaluation of the EC dollar. Furthermore, this paper contributes to the literature by analyzing the distinctive impact of tourism in determining real exchange rates through the wealth effect induced by tourism-driven increases in terms of trade and productivity. Mode of access: Internet Cashin, Paul. Sun, Yan. IMF Working Papers; Working Paper ; No. 2009/078 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/078/001.2009.issue-078-en.xml IMF e-Library