Temporal Dimension and Equilibrium Exchange Rate - Archive ouverte HAL Accéder directement au contenu
Article Dans Une Revue SSRN : Social Science Research Network Année : 2010

Temporal Dimension and Equilibrium Exchange Rate

Résumé

This paper investigates the temporal links between two models of equilibrium exchange rate, namely the behavioral and the fundamental approaches. Our results show that, even though in the long-run they are closely related, important differences are observed for some countries and/or some periods. Contrary to previous contributions, we analyze the factors that explain this disconnection. We outline structural changes in matter of competitiveness, the dynamics of foreign assets and valuation effects as explanations. This novel evidence is important if the two approaches for assessing misalignments are used for policy decisions such as setting tariffs to cope with the “currency war”.
Fichier non déposé

Dates et versions

hal-02169240 , version 1 (01-07-2019)

Licence

Paternité

Identifiants

Citer

Antonia Lòpez-Villavicencio, Jacques Mazier, Jamel Saadaoui. Temporal Dimension and Equilibrium Exchange Rate. SSRN : Social Science Research Network, 2010, 13 (1), pp.58-77. ⟨10.2139/ssrn.1933263⟩. ⟨hal-02169240⟩
37 Consultations
0 Téléchargements

Altmetric

Partager

Gmail Facebook X LinkedIn More