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 empirically test the validity of four popular monetary exchange rate models under five alternative inflation expectation approximations using the NOK/USD exchange rate. The selection of Norway seems appropriate as it is a small open economy that does not participate in most economic or...

This paper employs a VAR model, to investigate the response of private and public employment, the trade balance and the real effective exchange rate to fiscal policy shocks for South Africa during the period 1994:1-2008:4. The results reveal that in the short run, a positive shock to government...

This paper employs a VAR model, to investigate the response of private and public employment, the trade balance and the real effective exchange rate to fiscal policy shocks for South Africa during the period 1994:1-2008:4. The results reveal that in the short run, a positive shock to government...

We investigate the connection between commodity price shocks and unemployment in advanced resource-rich small open economies from an empirical and theoretical perspective. Shocks to commodity prices are shown to influence labour market conditions primarily through the real exchange rate...