This article analyzes the theory of equilibrium real exchange rates and defines misalignment as a deviation of the real exchange rate (RER) from its equilibrium

The study cautiously identifies exchange rate misalignment as an important element in most of the exchange rate crises that plagued the developing world during

The exchange rate is a crucial variable linking a nation's domestic economy to the international market. Thus choice of an exchange rate regime is a central com

In recent years, an increasing number of developing countries have adopted market-determined floating exchange rates. This development has represented a signifi