Real Exchange Rates and Optimum Currency Areas: Evidence from Developed Economies
AbstractIn this paper, the authors link real exchange rates and optimum currency area criteria. The authors examine the hypothesis that countries not fulfilling optimum currency area criteria in full will tend to have volatile bilateral real exchange rate. The authors find that, based on a study of data from developed economies from the 1990s, optimum currency criteria (such as trade integration, asymmetry of shocks, openness) help explain bilateral real exchange-rate variation.
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Bibliographic InfoArticle provided by Charles University Prague, Faculty of Social Sciences in its journal Finance a uver - Czech Journal of Economics and Finance.
Volume (Year): 55 (2005)
Issue (Month): 5-6 (May)
GMM estimation; optimum currency areas; real exchange Mates;
Find related papers by JEL classification:
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
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