A DSGE model is used to examine whether including the exchange rate in the central bank’s policy rule can improve economic performance. Smoothing the exchange rate helps both financially-robust economies and financially-vulnerable emerging economies in handling risk premium shocks and, given a...

This paper analyzes past and possible future spillovers from the Euro Area Sovereign Debt Crisis, both within the Euro Area and to the rest of the world. This analysis is based on a structural macroeconometric model of the world economy, disaggregated into fifteen national economies. We find...

Purpose – The purpose of this paper is to assess the level of the real effective exchange rate in Australia and New Zealand. Design/methodology/approach – The paper describes three empirical models commonly used to conduct exchange rate assessments and applies them to data for Australia and...

Purpose – The purpose of this paper is to assess the level of the real effective exchange rate in Australia and New Zealand. Design/methodology/approach – The paper describes three empirical models commonly used to conduct exchange rate assessments and applies them to data for Australia and...