6533b874fe1ef96bd12d60ab
RESEARCH PRODUCT
Oil prices and Spanish competitiveness
Mariam CamareroCecilio Tamaritsubject
Economics and EconometricsVariable (computer science)Interest rate parityPanel analysisExchange rateCointegrationEconomicsDifferential (mechanical device)Monetary economicsReal interest rateSupply and demanddescription
Abstract This paper tries to find, using panel cointegration techniques, the factors explaining the real exchange rate of the Spanish peseta following the monetary approach to exchange rate determination developed in Meese and Rogoff (1988). In addition to the real interest rate differential, the real oil price (adjusted accounting for the relative oil dependence of the countries considered) is included as one of the main long-run determinants. The results are favorable to this simple model, stressing the role played by both, demand and supply factors, to explain the behavior of the peseta real exchange rate. However, the results are not homogeneous in the case of the real oil prices: this variable turns out to be significant vis-a-vis the countries that are less oil dependent than Spain.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2002-10-01 | Journal of Policy Modeling |