Freitas, Miguel Lebre deLapeyre Jr, Philip Francis2025-03-262025-03-262024-01-302023-12-20http://hdl.handle.net/10362/181390A time-series ARDL model produced an estimated REER misalignment that was larger in its overvaluation than the estimated overvaluations of the EQCHANGE database and the IMF reports. All three estimates corroborated that movement of REER after the 2014-2016 decline in oil prices deviated from what the macroeconomic fundamentals would justify. An analysis, rooted in separate evaluations by the IMF, of dollarization’s role in Ecuador’s overvalued REER through an appreciation of the dollar and unsynchronized business cycles. The implications of a persistently overvalued REER are varied, but its effect on competitiveness and productivity of tradables is noteworthy given Ecuador’s low-complexity exports.engMacroeconomicsReal effective exchange rateDollarizationEcuadormaster thesis203902572