A Two-Country NATREX Model for the Euro/Dollar
AbstractThis paper develops a NATREX (NATural Real EXchange rate) model for two large economies, the Eurozone and the United States. The NATREX approach has already been adopted to explain the medium-long term dynamics of the real exchange rate in a number of industrial countries. So far, however, it has been applied to a one-country framework where the "rest of the world" is treated as given. In this paper, we build a NATREX model where the two economies are fully specified and allowed to interact. Our theoretical model offers the basis for empirical estimation of the euro/dollar equilibrium exchange rate that will be carried out in future research. JEL classification: F31; F36; F47
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 4046.
Date of creation: Apr 2007
Date of revision:
Key words: NATREX; equilibrium exchange rate; euro/dollar; structural approach;
Other versions of this item:
- Belloc, Marianna & Federici, Daniela, 2010. "A two-country NATREX model for the euro/dollar," Journal of International Money and Finance, Elsevier, Elsevier, vol. 29(2), pages 315-335, March.
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- F31 - International Economics - - International Finance - - - Foreign Exchange
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-07-20 (All new papers)
- NEP-CBA-2007-07-20 (Central Banking)
- NEP-EEC-2007-07-20 (European Economics)
- NEP-IFN-2007-07-20 (International Finance)
- NEP-MON-2007-07-20 (Monetary Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Daniela Federici & Giancarlo Gandolfo, 2011.
"The Euro/Dollar Exchange Rate: Chaotic or Non-Chaotic?,"
CESifo Working Paper Series
3420, CESifo Group Munich.
- Daniela Federici & Giancarlo Gandolfo, 2011. "The Euro/Dollar Exchange Rate: Chaotic or Non-Chaotic?," DEGIT Conference Papers, DEGIT, Dynamics, Economic Growth, and International Trade c016_035, DEGIT, Dynamics, Economic Growth, and International Trade.
- Minoas Koukouritakis & Nikolaos Giannellis, .
"Behavioural Equilibrium Exchange Rate and Total Misalignment: Evidence from the Euro Exchange Rate,"
Working Papers, University of Crete, Department of Economics
0901, University of Crete, Department of Economics.
- Nikolaos Giannellis & Minoas Koukouritakis, 2011. "Behavioural equilibrium exchange rate and total misalignment: evidence from the euro exchange rate," Empirica, Springer, Springer, vol. 38(4), pages 555-578, November.
- Giancarlo Gandolfo, 2012. "The Tobin Tax in a Continuous-time Non-linear Dynamic Model of the Exchange rate," ASSRU Discussion Papers, ASSRU - Algorithmic Social Science Research Unit 1221, ASSRU - Algorithmic Social Science Research Unit.
- Federici, Daniela & Gandolfo, Giancarlo, 2012. "The Euro/Dollar exchange rate: Chaotic or non-chaotic? A continuous time model with heterogeneous beliefs," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 36(4), pages 670-681.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.