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Concepts to Calculate Equilibrium Exchange Rates: An Overview

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dc.creator MacDonald, Ronald
dc.date 2000
dc.date.accessioned 2013-10-16T07:05:27Z
dc.date.available 2013-10-16T07:05:27Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/19531
dc.identifier ppn:318219956
dc.identifier RePEc:zbw:bubdp1:4139
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/19531
dc.description In this paper we present a critical overview of differnt methods of constructing an equilibrium exchange rate. The recent literature on purchasing power parity (PPP) indicates that on its own PPP is not a good vehicle for defining an equilibrium exchange rate. Rather, we argue that the latter can only be recover from a model in which the real determinants of exchange rates are explicitly modelled. The advantages and disadvantages of various such models are discussed. In particular, the internal-external balance approach to defining an equilibrium real exchange rate is disccused, and this method is compared to the so-called behavioural equilibrium approach. Finally, an approach which uses purely time series methods to construct an equilibrium exchange rate is also discussed.
dc.language eng
dc.relation Discussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank 2000,03
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject F31
dc.subject ddc:330
dc.subject Equilibrium Exchange Rates
dc.subject Purchasing Power Parity
dc.subject Real Exchange Rate Models
dc.subject Wechselkurstheorie
dc.subject Gleichgewicht
dc.subject Kaufkraftparität
dc.subject Ökonometrisches Modell
dc.subject Theorie
dc.title Concepts to Calculate Equilibrium Exchange Rates: An Overview
dc.type doc-type:workingPaper


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