01829cas a2200253 a 4500 AALejournalIMF009160 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451865172 1018-5941 BD-DhAAL BD-DhAAL Petri, Martin. To Smooth or Not to Smooth-The Impact of Grants and Remittances on the Equilibrium Real Exchange Rate in Jordan / Martin Petri, Tahsin Saadi-Sedik. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (37 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 estimates the effect of grants and workers' remittances on Jordan's long-term equilibrium real exchange rate. We estimate an equilibrium path for the Jordanian real exchange rate using the Johansen cointegration methodology over the period 1964 to 2005. Controlling for other fundamentals, we find that both grants and workers' remittances appreciate the equilibrium real exchange rate in a statistically and economically significant way. We also find that assessing deviations of the actual real exchange rate from the estimated equilibrium real exchange rate is nontrivial because different smoothing methodologies and the nonsmoothed estimates give very different results. Mode of access: Internet Saadi-Sedik, Tahsin. IMF Working Papers; Working Paper ; No. 2006/257 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/257/001.2006.issue-257-en.xml IMF e-Library