López-Suárez, Carlos Felipe; Rodríguez-López, José … - In: Journal of International Money and Finance 30 (2011) 5, pp. 877-895
We study whether the nonlinear behavior of the real exchange rate can help us account for the lack of predictability of the nominal exchange rate. We construct a smooth nonlinear error-correction model that allows us to test the hypotheses of nonlinear predictability of the nominal exchange rate...
