Engels, Frank; Konstantinou, Panagiotis Th.; … - In: Review of International Economics 15 (2007) 3, pp. 612-637
This paper provides favorable econometric evidence for a productivity-based model of the pound/euro real exchange rate. We find that a 1% increase in UK productivity is consistent with a 3.5% real depreciation of sterling. Likewise, a 1% increase in euro area productivity is compatible with a...
