Tipoy, Christian KakeseBreitenbach, Marthinus ChristoffelZerihun, Mulatu Fekadu2020-04-072020-04-072016Tipoy, C.K., Breitenbach, M.C. & Zerihun, M.F. 2016, 'Equilibrium exchange rates and misalignments : the case of homogenous emerging countries', SPOUDAI Journal of Economics and Business, vol. 66, no. 4, pp. 3-25.1105-8919 (print)2241-424X (online)http://hdl.handle.net/2263/74057We compute the exchange rate misalignment for a set of emerging economies between 1980 and 2013 using the behavioural equilibrium exchange rate definition. The real equilibrium exchange rate is constructed using a parsimonious model and estimators that are robust to cross-sectional independence and small sample size bias. We find that these countries tend to intervene to avoid real appreciation of their currencies following a rise in relative productivity, casting doubt on the Balassa-Samuelson effect. East-Asian countries have maintained their currencies at an artificially low level in order to remain competitive and boost economic growth these past years.enUniversity of PiraeusEquilibrium exchange ratePanel cointegrationAutoregressive distributed lagArticle