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Taux de change d'équilibre et politiques économiques. Une approche contingente

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  • Antoine Bouveret
  • Bruno Ducoudré

Abstract

Equilibrium exchange rate theories make the assumption that the Real Equilibrium Exchange Rate (rer) is independent from internal equilibrium and economic policies. We develop a model in which economic policies depend on the minimisation of an intertemporal loss function, and we show that in a Wage Setting-Price Setting (ws-ps) framework, the rer depends on the policymakers? objectives, making the previous assumptions highly questionable. In our model, the long run (equilibrium) real exchange rate is contingent on policymakers? preferences, implying that equilibrium exchange rate estimates must be treated with caution. Classification JEL : F31, F32, F41, F42

Suggested Citation

  • Antoine Bouveret & Bruno Ducoudré, 2008. "Taux de change d'équilibre et politiques économiques. Une approche contingente," Revue économique, Presses de Sciences-Po, vol. 59(3), pages 551-560.
    • Handle: RePEc:cai:recosp:reco_593_0551
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    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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