TY - BOOK ID - 84541194 TI - Tunisia’s Experience with Real Exchange Rate Targeting and the Transition to a Flexible Exchange Rate Regime. AU - International Monetary Fund. AU - International Monetary Fund PY - 2002 SN - 1462370039 1452798613 1282109820 1451905033 9786613802712 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Foreign Exchange KW - Inflation KW - Current Account Adjustment KW - Short-term Capital Movements KW - Price Level KW - Deflation KW - Currency KW - Foreign exchange KW - Macroeconomics KW - Real exchange rates KW - Exchange rates KW - Real effective exchange rates KW - Exchange rate arrangements KW - Prices KW - Tunisia UR - https://www.unicat.be/uniCat?func=search&query=sysid:84541194 AB - Over the past decade or so, Tunisia has experienced a strong economic performance while pursuing a constant real exchange rate rule (CRERR). The limitations of this rule are now beginning to emerge in the context of a more open economy, regional integration, a more market-based monetary policy, and the desire to relax capital controls. This paper explores how Tunisia avoided the pitfalls of real exchange rate targeting as predicted by the theoretical models. By estimating the equilibrium real exchange rate based on fundamental variables and assessing different measures of competitiveness, the paper finds no evidence of a misalignment in the current level of the exchange rate. ER -