structural breaks is employed, we find evidence that the real interest rate differential is an important determinant of the real … and is indeed country-specific. Keywords: Real exchange rate; real interest rate differential; nonstationarity … relationship between the US/UK real exchange rate and the real interest rate differential …

error variance decomposition. Findings – The result of the ARDL approach shows an increase in the real interest rate … exchange rate in the long run. The result of the generalized forecast error variance decomposition shows that the real interest … rate differential, productivity differential, the real oil price, and reserve differential are generally important to the …

smooth transition regression (PSTR) model with the transition variable of lagged real interest rate differential. The … time and across countries depending on the lagged real interest rate differential during the different regimes. Moreover …

error variance decomposition. Findings – The result of the ARDL approach shows an increase in the real interest rate … exchange rate in the long run. The result of the generalized forecast error variance decomposition shows that the real interest … rate differential, productivity differential, the real oil price, and reserve differential are generally important to the …

substantially improves the fit of the real interest rate differential model and leads to parameter estimates, which in one regime …