The management of the real exchange rate
remains the most important topic for economists, as the difficulty they face is
how to determine the equilibrium exchange rate, which is one of the most
important international macroeconomic problems. Indeed the determination of the equilibrium
REER or also called "equilibrium exchange rate" depends on
theoretical analysis, for Driver and Westaway (2004), there is no single
definition of the equilibrium exchange rate, the theoretical analyses of the
equilibrium REER were made following three main approaches namely the
macroeconomic approach (the fundamental equilibrium exchange rate (FEER), the
econometric approach (the behavioral equilibrium exchange rate (BEER) and the
dynamic approach (the natural real exchange rate (NATREX). This paper presents an analysis of the real
equilibrium exchange rate, its main foundations and its misalignment through an
econometric modeling for the Moroccan case, covering the period 1990-2018. An
error-correction model (ECM) is estimated to obtain the long-run cointegrating
or stable equilibrium relationship.
exchange rate, misalignment, ECM.