At the beginning of 1999 the euro was launched as a common currency in 11 European countries. This paper addresses … empirically the medium to long-term forces driving the real euro-dollar exchange rate. Constructing a synthetic euro … determinants of the real euro-dollar exchange rate: the international real interest rate differential, relative prices in the …

, when the euro started appreciating, a different set of fundamentals had to be isolated in order to account for such …The predictions made by economists of the value of the euro prior to its introduction were essentially based on the … analysts agreed that the euro would be a strong currency, appreciating against the US dollar. The first years of life of the …

At the beginning of 1999 the euro was launched as a common currency in 11 European countries. This paper addresses … empirically the medium to long-term forces driving the real euro-dollar exchange rate. Constructing a synthetic euro … determinants of the real euro-dollar exchange rate: the international real interest rate differential, relative prices in the …

the euro area. The model includes real, nominal and financial frictions, and hence both monetary and macroprudential … volatility, improve welfare, and partially substitute for the lack of national monetary policies. Macroprudential policy would …