TY  - JOUR
TI  - Estimation of the Equilibrium Real Exchange Rate for Russia
T2  - HSE Economic Journal 
IS  - HSE Economic Journal 
KW  - equilibrium real exchange rate
KW  - reduced form solution
KW  - terms of trade
KW  - capital flows
AB  - Following methodological approach proposed by Edwards, the paper estimates empirically Russia's equilibrium real exchange rate (ERER) for the period 1995-2003. ERER is defined as the relative price of non-tradables to tradables consistent with the simultaneous achievement of internal and external balances of the economy. Reduced form solution of simultaneous equations system relates ERER to a set of variables called fundamentals. These variables are identified as terms of trade, production of non-tradables, and capital flows; and the reduced form equation is estimated using Johansen cointegration technique. Effects of monetary and fiscal policies’ variables on the short-run dynamics of the real exchange rate and the speed of its adjustment towards the equilibrium are also investigated within a framework of error-correction model.
AU  - Kirill Sosunov
AU  - Andrew Shumilov
UR  - https://ej.hse.ru/en/2005-9-2/26554811.html
PY  - 2005
SP  - 216-229
VL  - 9