This paper attempts to measure the degree of misalignment of the euro - in particular against the dollar - by … estimating equilibrium exchange rates for the euro and the rest of G-7 currencies. Building on the methodology of Alberola et al … equilibrium real rates into bilateral equilibrium nominal rates. The results uncover that the euro is the only currency that shows …

The paper deals with the choice of the nominal euro conversion rates for the acceding countries upon their accession to … of 'optimal' euro conversion rates is quiet wide and other issues must be taken into account. In particular, a smooth … transition to the euro conversion rate and minimisation of risks of potential shocks to the economy should be the key concern …