The paper examines the behaviour of bilateral real exchange rates between Germany and fourteen major economies for the period January 1972 to December 1994. Time series techniques are used to consider a number of hypotheses including whether the real exchange rate is mean reverting; whether...

The objective of this paper is to estimate both long-run reserves and long-run money demand equations using the multivariate cointegration approach. An economic model is constructed, based on the monetary approach to the balance of payments, in which the monetary authorities can control the...