This paper is a step in the direction of a larger research project aimed at determining the long run equilibrium value of the euro/dollar real exchange rate. Given this value, one could then give a precise meaning to the notion of undervaluation or overvaluation of the euro, and calculate its...

This paper is a step in the direction of a larger research project aimed at determining the long run equilibrium value of the euro/dollar real exchange rate. Given this value, one could then give a precise meaning to the notion of undervaluation or overvaluation of the euro, and calculate its...

We evaluate studies of the "equilibrium" value of the real euro. We ask: how can one explain the medium to longer run movements in the synthetic Euro? We compare the results derived from a statistical/atheoretic approach with those based upon a theoretical stock/flow/growth model with an...