Real Exchange Rates and Fundamentals: Evidence from 15 OECD Countries
AbstractIn an extended Balassaâ€“Samuelson model, long-run real exchange rates are determined by relative productivity and terms of trade. We present evidence of systematic long-run relationships between these fundamental variables and real exchange rates in a data set covering 15 OECD countries from 1960 to 1996. High relative productivity is associated with real exchange rate appreciations in most cases. There is less support for the hypothesis that the terms of trade affect equilibrium real exchange rates. Copyright Kluwer Academic Publishers 2000
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Bibliographic InfoArticle provided by Springer in its journal Open Economies Review.
Volume (Year): 11 (2000)
Issue (Month): 4 (October)
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Web page: http://www.springerlink.com/link.asp?id=100323
real exchange rates; Balassaâ€“Samuelson model;
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