A copy of this work was available on the public web and has been preserved in the Wayback Machine. The capture dates from 2011; you can also visit the original URL.
The file type is application/pdf.
Exchange Rate Dynamics and Fundamental Equilibrium Exchange Rates
2011
Social Science Research Network
Preserved Fulltext
The paper investigates if the most popular alternative to the purchasing parity power approach (PPP) to estimate equilibrium exchange rates, the fundamental equilibrium exchange rate (FEER) influences exchange rate dynamics in the long run. For a large panel of industrialized and emerging countries and on the period 1982-2007, we detect the presence of unit roots in the series of real effective exchange rates and in the series of FEERs. We find and estimate a cointegration relationship between
doi:10.2139/ssrn.1933305
fatcat:et43mcvuczgxjiifyppoby4ypi