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PROJECT TOPIC: THE BEHAVIOUR AND FUNDAMENTAL DETERMINANTS OF THE REAL EXCHANGE RATE IN SOUTH AFRICA

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Abstract

Real exchange rates have important effects on production, employment and trade, so it is crucial to understand the factors responsible for their variations. This study analyses the main determinants of the real exchange rate and the dynamic adjustment of the real exchange rate following shocks to those determinants, using quarterly South African data covering the period 1975 to 2005.


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