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Nonlinear Adjustment in the Real Euro-Dollar Exchange Rate : The Role of the Productivity Differential as a Fundamental

Camarero, Mariam; Ordóñez Monfort, Javier - 2004

In this paper we analyze the adjustment dynamics of the euro-dollar real exchange rate towards one of the most relevant …

Persistent link: https://www.econbiz.de/10014071788

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

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

Tobin Tax and Exchange Rate Volatility : A Reassessment

Damette, Olivier - 2012

From Olsen Financial Studies data on the Euro-Dollar currency pair (2008-2010), we conduct a time-series analysis to …

Persistent link: https://www.econbiz.de/10013103637

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

Likelihood-based cointegration analysis in panels of vector error correction models

Groen, Jan J. J.; Kleibergen, Frank - 1999 - This version: July 28, 1999

We propose in this paper a likelihood-based framework forcointegration analysis in panels of a fixed number of vector errorcorrection models. Maximum likelihood estimators of thecointegrating vectors are constructed using iterated GeneralizedMethod of Moments estimators. Using these estimators...

Persistent link: https://www.econbiz.de/10011302148

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

A New Approach to the Estimation of Equilibrium Real Exchange Rates among East-Asian Economies

Research, Hong Kong Institute for Monetary and Financial - 2022

This working paper was written by Juan Carlos Martinez Oliva (Bank of Italy).In view of the debate on exchange rate stabilization in Asia, this paper introduces a new and original approach to the determination of equilibrium real exchange rates (ERER) across ASEAN+3. Existing literature usually...

Persistent link: https://www.econbiz.de/10014048640

Nominal Exchange Rate Flexibility and Real Exchange Rate Adjustment : New Evidence from Dual Exchange Rates in Developing Countries

Research, Hong Kong Institute for Monetary and Financial - 2022

This working paper was written by Yin-wong Cheung (University of California, Santa Cruz) and Kon S. Lai (California State University, Los Angeles).This study investigates whether greater nominal exchange rate flexibility aids real exchange rate adjustment based on data from dual exchange rates...

Persistent link: https://www.econbiz.de/10014048648

On the Contingency of Equilibrium Exchange Rates with Time Consistent Economic Policies

Bouveret, Antoine; Ducoudré, Bruno - 2007

Equilibrium exchange rate theories (FEER, BEER and NATREX) make the assumption that the Real Equilibrium Exchange Rate (RER) is independent from internal equilibrium and economic policies. We develop a model in which economic policies depend on the minimisation of an intertemporal loss function...

Persistent link: https://www.econbiz.de/10014052669