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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 …-dollar exchange rate over a period from 1975 to 1998 and applying cointegration approaches, four factors are identified as fundamental …
Persistent link: https://www.econbiz.de/10014155568
misalignment exists in the trilateral rates between the RMB, US$ and euro. The finding refutes the claim that RMB appreciation is …
Persistent link: https://www.econbiz.de/10014048983
In this paper we analyze the adjustment dynamics of the euro-dollar real exchange rate towards one of the most relevant …
Persistent link: https://www.econbiz.de/10014071788
the Dollar/Euro exchange rate. This version is based on the differential of inflation expectations derived from inflation …-indexed bonds for the Euro area and the USA. Using the longest daily data a for both the Dollar/Euro exchange rate and for the …
Persistent link: https://www.econbiz.de/10014077042
This special feature explores the extent to which transatlantic M&A deals are associated with movements in the dollar/euro …
Persistent link: https://www.econbiz.de/10013095642
Equilibrium Exchange Rate (BEER) approach of Edwards (1989). Our modelling approach accounts for the possible effects of … of cointegration between output and its determinants with a structural break in 2003Q2. Furthermore, we found empirical …
Persistent link: https://www.econbiz.de/10012840513
Empirical studies outline developing countries’ experience economic growth through an undervalued exchange rate and that exchange rate overvaluations have negative long term effects on economic growth. This paper examined the impact of exchange rate movements as well as exchange rate...
Persistent link: https://www.econbiz.de/10011956526
This paper analyzes the factors underlying the weakness of the euro. For this purpose, the framework advocated by … sample from 1980 to 2000. However, historical decompositions reveal that fluctuations since the introduction of the euro in …
Persistent link: https://www.econbiz.de/10011473872
The base currency effect in the PPP literature refers to the stylised fact that tests on real exchange rates denominated in German marks are more likely to support mean reversion than analogous tests on US dollar rates. Using a panel of 19 OECD currencies and monthly data, 1973-97, three panel...
Persistent link: https://www.econbiz.de/10014141701
In this letter we model the deviation of the nominal exchange rate from the long run equilibrium level predicted by monetary fundamentals in a nonlinear framework consistent with the presence of transaction costs. We consider a novel approach that allows for the joint testing of nonlinearity and...
Persistent link: https://www.econbiz.de/10014075254