Economic theory refers to several notions of the exchange rate equilibrium value in a flexible exchange rate regime. It has been defined as that consistent with : a) the equilibrium of trade balance; b)the equilibrium of current account; c) the overall equilibrium of the balance of payments; d)...

This paper shows a new macro-econometric approach to the NATREX model of the equilibrium real exchange rate. Many of the models in the literature are based upon anticipations, monetary policy, and speculative capital movements. The NATREX model denotes what are the fundamental determinants of...