This study examines the long-run relationship between the real effective exchange rate and its fundamental determinants, and derives a real effective equilibrium exchange rate for the Swedish krona. Our results indicate that the krona was severely overvalued in late 1992, when the fixed exchange...

In this study, we make use of time series analysis to calculate a real effective equilibrium exchange rate for Sweden. The results indicate that the krona was severely overvalued in late 1992, when the fixed exchange rate regime finally was abandoned. Furthermore, the results indicate that the...

This study presents alternative measures of the Swedish real effective exchange rate (REER), based on three alternative weighting schemes and three alternative price indices. Pros and cons of alternative measures are discussed in the context of the REER as an indicator of competitiveness....