We argue that the main equilibrium exchange rate approaches (ppp, beer, and feer) correspond to different time horizons of a single theoretical framework. We propose an illustration for the euro/dollar exchange rate. Our results suggest that the various approaches should not be opposed but...

We examine the effect of exchange-rate misalignments on competition in the market for large commercial aircraft. This market is a duopoly where players compete in dollar-denominated prices while one of them, Airbus, incurs a large fraction of its costs in euro. We estimate price elasticities for...

This paper proposes a systematic analysis of the problem of world consistency when deriving equilibrium exchange rates. World inconsistency can arise for two reasons. First, real effective misalignments of currencies out of the considered sample are implicitly assumed to be the mirror image of...

We present growth scenarios for 128 countries to 2050, based on a three-factor production function that includes capital, labour and energy. We improve on the literature by accounting for the energy constraint through dynamic modelling of energy productivity, and departing from the assumptions...

Dans sa version initiale, le Pacte de Stabilité et de Croissance (PSC) fixe à 3% le déficit public maximumpour chacun des pays membres de la zone euro. Toutefois, afin d'éviter de subir les procéduresde déficit public excessif, les pays peuvent éventuellement se prévaloir de...

<alinea/> Eleven years after the creation of the euro, this article surveys the international role of the European currency. The external representation of Eurozone has not yet reached its equilibrium point, and the relative economic weight of the area is bound to diminish in future years but this has...

Based on a simple, stock-flow adjustment framework, we show that existing concepts of equilibrium exchange rates can be viewed as realizations of the same model at different time horizons. We then compare fundamental and behavioral estimations of equilibrium exchange rates based on the same,...

We study how French exporters react to a VAT shock in a destination country. VAT shocks are by nature almost permanent, exogenous, and have no impact on marginal costs. We argue that the subsequent price reaction therefore identifies to which extent mark-up adjustments tame the impact of a macro...

Though the renminbi is not yet convertible, the international monetary regime has already started to move towards a 'multipolar' system, with the dollar, the Chinese currency and the euro as its key likely pillars. This shift corresponds to the long-term evolution of the balance of economic...

Reform of the international monetary system is under discussion after three decades of apathy. However, in the short term, there is little chance of a grand redesign of the international monetary system. Nevertheless, concrete steps should be taken. First, consensus is needed on exchange rates,...