Hoffmann, Mathias (contributor); … - 2007
A Re-examination of the link between Real
Exchange Rates and Real Interest Rate
Di�erentials1
Mathias Ho�mann
Dept. of … relationship is economically signi�cant and that the real interest rate
di�erential is a reasonable approximation of the expected …-known exchange rate models highlight the role of the real interest
rate di�erential as a key determinant of real exchange rates. For …