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 … synthetic euro within a consistent theoretical framework. Uncovered real long term interest rate parity helps to explain …

The ultimate object of research concerning the Euro is to answer the following questions: (#1) What is the equilibrium … trajectory of the nominal euro, measured as dollars/euro? (#2) To what extent has the equilibrium nominal euro been determined by … transitory factors in affecting the value of the euro? (#4) Is the euro currently undervalued, and by what criteria? Our …