U.K., Japan, France and Germany with respect to the United States is conducted. The resulting conclusion is that real …A careful basic theoretical and econometric analysis of the factors determining the real exchange rates of Canada, the …

for the bulk of the real exchange rate variations for Japan, Italy, Germany, France, and the UK vis-à-vis the US dollar … over short horizons. For Canada, however, transitory shocks are dominant over the short horizon. In sum, while for Japan …, France, and Italy, around 15% of the variation in real exchange rate is due to transitory shocks, for Canada, Germany and the …