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Endogenous Growth in an Open Economy and the Real Exchange Rate
Federici, Daniela; Gandolfo, Giancarlo - 2021
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 misalignment. The problem however arises of how to assess the … calculations. This of course is not (yet) possible for the euro, so that all the calculations of the misalignment of the euro that …
Persistent link: https://www.econbiz.de/10013320859
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The Role of the Exchange Rate Regime in the Process of Real and Nominal Convergence
D'Adamo, Gaetano - 2013
-S type of regression for each regime. Our results show that, for countries which pegged to or adopted the euro, the effect of … conclude that, in a catching-up country, premature euro adoption may foster excess inflation, beyond that which is to be …
Persistent link: https://www.econbiz.de/10013074886
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The Ignored Exchange Rate Fundamental
Müller-Plantenberg, Nikolas A. - 2006
Commercial and financial transactions between countries induce payment flows, which influence exchange rates. Exchange rates tend to follow the movements of the current account with a lag. The adjustment delay occurs as countries finance balance of payments deficits by borrowing from abroad....
Persistent link: https://www.econbiz.de/10014058900
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Exchange rate risk, distribution asymmetry and deviations from purchasing power parity
Arghyrou, Michael Georgiou; Lu, Wenna; Pourpourides, … - 2020
Firstly, we show that domestic prices of net importer countries incorporate a risk premium, driven by higher moments of future nominal exchange rate returns and secondly, using US dollar exchange rates against three currencies of major net exporting countries to the US such as Canada, Japan and...
Persistent link: https://www.econbiz.de/10012230006
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Investor sentiment in the US-dollar : longer-term, nonlinear orientation on PPP
Menkhoff, Lukas (contributor);  … - 2007
How is it possible that exchange rates move in the long run towards fundamentals, while professionals form consistently irrational exchange rate expectations? We look at this puzzle from a different perspective by analyzing investor sentiment in the US-dollar market. First, long-horizon...
Persistent link: https://www.econbiz.de/10003575469
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On the nature of shocks driving exchange rates in emerging economies
Kolev, Galina V. - 2015
The paper analyzes the sources of exchange rate movements in emerging economies in the context of monetary tapering by the Federal Reserve. A structural vector autoregression framework with a long-run restriction is used to decompose the movements of nominal ex-change rates into two components:...
Persistent link: https://www.econbiz.de/10011374055
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Large swings in currencies driven by fundamentals
Cumperayot, Phornchanok J.; Vries, Casper G. de - 2006
Exchange rate returns are fat-tailed distributed. We provide evidence that the apparent non-normality derives from the behavior of macroeconomic fundamentals. Economic and probabilistic arguments are offered for such a relationship. Empirical support is given by testing against normality and...
Persistent link: https://www.econbiz.de/10011349716
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A real differential view of equilibrium real exchange rates and misalignments
Hoffmann, Mathias; MacDonald, Ronald - 2000
This paper examines the interaction of G7 real exchange rates with real output and interest rate differentials. Using cointegration methods, we generally find a link between the real exchange rate and the real interest differential. This finding contrasts with the majority of the extant research...
Persistent link: https://www.econbiz.de/10009767694
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Net foreign assets, real exchange rates and net exports revisited
Bleaney, Michael F.; Tian, Mo - 2013
Theory suggests a significant positive relationship in long-run equilibrium between net foreign assets (NFA) as a proportion of GDP and real exchange rates. Empirical tests have ignored two issues: the large variation in cross-country trade/GDP ratios, which is likely to induce substantial...
Persistent link: https://www.econbiz.de/10009792044
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A consistent set of multilateral productivity approach-based indicators of price competitiveness
Fischer, Christoph; Hossfeld, Oliver - 2014
We propose a novel, multilaterally consistent productivity approach-based indicator to assess the international price competitiveness of 57 industrialized and emerging economies. It is designed to be a useful assessment tool for monetary policy authorities and, thereby, differs from previously...
Persistent link: https://www.econbiz.de/10010373688