出版社：The International Institute for Science, Technology and Education (IISTE)
摘要：This paper estimates Naira real exchange rate equilibrium viz-a-viz the US Dollar and its determinants by examining the existence of a significant long –run relationship between exchange rate, money (M2) supply, interest rate differentials and external reserves on high frequency data series over a 4-year period from 2008-2011. Vector Error Correction model was used to generate threshold for misalignment of exchange rate in this study. Empirical findings reveal that a rise in oil price leads to a real appreciation of the Naira, while M2 growth and rise in real interest rate differentials undermine real Naira/Dollar rate.
关键词：Real exchange rate; exchange rate misalignment; currency overvaluation; co-integration; unit roots test; vector error correction; the Balassa-Samuelson effect and causation tree.
