Exchange Rate Misalignment: An Application of Purchasing Power Parity and the Behavioral Equilibrium Exchange Rate in Vietnam


Authors

  • Nguyen Ngoc Dinh National Economics University
DOI: https://doi.org/10.57110/vnujeb.v2i6.123

Keywords:

exchange rate misalignment, real exchange rate, currency

Abstract

The impact of exchange rate misalignment on economic growth has become an important research topic in recent years in many different countries. Especially, in the context of global economic turmoil and trading conflicts between China and the United States, many countries have raised interest rates to combat rising inflation. Governments try to find suitable exchange rate policies to help stabilize the inflation and develop their economies. This paper aims to analyze the misalignment of the real effective exchange rate in Vietnam by using the Behavioral equilibrium exchange rate and purchasing power parity model. The result shows that the Vietnam Dong was undervalued in the period 2000-2010 and overvalued in the period 2010-2020.

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Published

25-12-2022

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How to Cite

Ngoc Dinh, N. (2022). Exchange Rate Misalignment: An Application of Purchasing Power Parity and the Behavioral Equilibrium Exchange Rate in Vietnam. VNU University of Economics and Business, 2(6). https://doi.org/10.57110/vnujeb.v2i6.123

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Original Articles