Bowden, Roger; Zhu, Jennifer - In: Studies in Nonlinear Dynamics & Econometrics 11 (2007) 3, pp. 1432-1432
Measuring country exchange rates relative to a common reference basket results in a set of no-arbitrage prices, unlike trade-weighted indexes, the usual method of comparing country exchange rate histories. The reference basket is analogous to a portfolio, and its choice can be resolved by...