On the neutrality of the exchange rate regime regarding real misalignments: Evidence from sub-Saharan Africa

摘要

This article provides further insights into the issue of real misalignments' effects of exchange rate regimes. Our approach aims at comparing real exchange rate misalignments between countries with fixed regimes and those practicing alternative arrangements in sub-Saharan Africa. To this end, we assess the equilibrium exchange rates based on two models of the equilibrium exchange rate, while using competing estimators and bothDe JureandDe Factoclassifications. Our results confirm the exchange rate regime neutrality regarding exchange rate misalignment, implying that the fixed regime is not prone to more misalignment within the sub-region.