TY - BOOK ID - 11268312 TI - To Smooth or Not to Smooth—The Impact of Grants and Remittances on the Equilibrium Real Exchange Rate in Jordan. PY - 2006 SN - 1451865171 1462352820 1451909705 9786613825193 1452780404 1283512742 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Electronic books. -- local. KW - Emigrant remittances -- Jordan -- Mathematical models. KW - Foreign exchange rates -- Jordan -- Mathematical models. KW - Grants-in-aid -- Jordan -- Mathematical models. KW - Smoothing (Numerical analysis). KW - Finance KW - Business & Economics KW - International Finance KW - Foreign exchange rates KW - Emigrant remittances KW - Grants-in-aid KW - Smoothing (Numerical analysis) KW - Mathematical models. KW - Immigrant remittances KW - Remittances, Emigrant KW - Exchange rates KW - Fixed exchange rates KW - Flexible exchange rates KW - Floating exchange rates KW - Fluctuating exchange rates KW - Foreign exchange KW - Rates of exchange KW - Federal grants KW - Grants KW - Rates KW - Curve fitting KW - Numerical analysis KW - Intergovernmental fiscal relations KW - Economic assistance, Domestic KW - Local finance KW - Exports and Imports KW - Foreign Exchange KW - Empirical Studies of Trade KW - Remittances KW - Currency KW - International economics KW - Real exchange rates KW - Real effective exchange rates KW - Terms of trade KW - Outward remittances KW - Economic policy KW - nternational cooperation KW - Jordan UR - https://www.unicat.be/uniCat?func=search&query=sysid:11268312 AB - This paper estimates the effect of grants and workers' remittances on Jordan's long-term equilibrium real exchange rate. We estimate an equilibrium path for the Jordanian real exchange rate using the Johansen cointegration methodology over the period 1964 to 2005. Controlling for other fundamentals, we find that both grants and workers' remittances appreciate the equilibrium real exchange rate in a statistically and economically significant way. We also find that assessing deviations of the actual real exchange rate from the estimated equilibrium real exchange rate is nontrivial because different smoothing methodologies and the nonsmoothed estimates give very different results. ER -