Belda, Paz Rico - Instituto Valenciano de Investigaciones Económicas (IVIE) - 2002
Nonlinearly mean-reverting models can explain the high short-term volatility ofthe real exchange rate and the slow … speed of adjustment to the equilibrium level. Anonlinearly mean-reverting model is used in this paper to fit to euro … becomes more mean reverting the further it isfrom equilibrium. The results provide evidence of nonlinearly mean reverting in …