Chen, Xiaoshan; MacDonald, Ronald - In: Journal of International Money and Finance 53 (2015) C, pp. 20-35
This paper employs an unobserved component model that incorporates a set of economic fundamentals to obtain the Euro–Dollar permanent equilibrium exchange rates (PEER) for the period 1975Q1 to 2008Q4. The results show that for most of the sample period, the Euro–Dollar exchange rate closely...
