Hairault, Jean-Olivier; Patureau, Lise; Sopraseuth, … - Centre pour la Recherche Économique et ses … - 2003
Transition to floating exchange rate regimes has led to sharp increases in nominal and real exchange rate volatilities with no corresponding changes in the distribution of fundamental macroeconomic variables. In the spirit of Dornbusch [1976], we assess whether nominal exchange rate overshooting...