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Analysis of Real Exchange rate: Case study of Thailand
Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
2011 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This paper examines the explanatory variables that can affect the real exchange rate

(RER). It aims at investigating the way in which RER (real exchange rate) misalignment

relates to the Thai economy in regarding the financial crisis, capital control policy imposed by

the central Bank of Thailand (BOT), and import/export. The RER (real exchange rate) at the

equilibrium level will be estimated using the behavioral effective exchange rate model (BEER

model). RER (real exchange rate) misalignment is observed through comparing the calculated

RER (real exchange rate) and the estimated RER (real exchange rate) in the long run

equilibrium. Using data from year 1993Q1 to 2010Q4, it can be observed the direction in

which each main economic factors affecting RER (real exchange rate). The result reveals the

RER (real exchange rate) misalignment; overvaluation in the period before 1997 Asian

financial crisis and before US subprime crisis in 2008. These misalignments of RER (real

exchange rate) correspond to the intervention from BOT. With RER (real exchange rate)

misalignment, the impact on import/export sector plays vital role towards criteria of policy


Place, publisher, year, edition, pages
2011. , 52 p.
Keyword [en]
Real exchange rate, Thailand
National Category
URN: urn:nbn:se:lnu:diva-12264OAI: diva2:421607
Subject / course
Social and Behavioural Science, Law
Available from: 2011-06-13 Created: 2011-06-09 Last updated: 2011-06-13Bibliographically approved

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