The equilibrium real exchange rate of the Euro an evaluation of research

We evaluate studies of the "equilibrium" value of the real euro. We ask: how can one explain the medium to longer run movements in the synthetic Euro? We compare the results derived from a statistical/atheoretic approach with those based upon a theoretical stock/flow/growth model with an e...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:Ifo-Institut für Wirtschaftsforschung IFO-Studien
1. Verfasser: Stein, Jerome L. (VerfasserIn)
Format: UnknownFormat
Sprache:eng
Veröffentlicht: 2002
Schlagworte:
Wechselkurs > Kaufkraftparität > Euro > Gleichgewichtsmodell > Schätzung > EU-Staaten > USA > NATREX > Aufsatz in Zeitschrift
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung:We evaluate studies of the "equilibrium" value of the real euro. We ask: how can one explain the medium to longer run movements in the synthetic Euro? We compare the results derived from a statistical/atheoretic approach with those based upon a theoretical stock/flow/growth model with an explicit transmission mechanism. Conclusions: there are real fundamental factors - productivity, thrift and the terms of trade - that explain the longer term movements in the equilibrium real exchange rate of the synthetic euro within a consistent theoretical framework. Uncovered real long term interest rate parity helps to explain deviations from the longer term equilibrium. There is a considerable model uncertainty. The quantitative estimates vary depending upon the method of estimation.
Beschreibung:In: Ifo-Studien
Beschreibung:graph. Darst
ISSN:0018-9731