IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The Dollar/Euro Exchange Rate

Listed author(s):
  • John Williamson

While the practical policies toward the exchange rate of the Fed and the ECB are very similar, there is a major philosophical difference between the American view that governments have no business to worry about capital flows and exchange rates versus the European view that these things matter and that floating is simply not defending a particular rate. Under the first view, the only issue is what determines the exchange rate. The literature has concluded that not much can be said about this in the short run, but that in the long run misaligned rates tend to return toward equilibrium (“PPP”). Under the second view, it makes sense to ask what is the “fundamental equilibrium exchange rate” (or some FEER-like concept). Most of the evidence suggests that the dollar/euro rate at the time of writing the article ($1.27) represented at most a modest overshooting.

If 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.

File URL:
Download Restriction: no

Article provided by CEPII research center in its journal Economie Internationale.

Volume (Year): (2004)
Issue (Month): 100 ()
Pages: 51-60

in new window

Handle: RePEc:cii:cepiei:2004-4qd
Contact details of provider: Postal:
113, rue de Grenelle, 75700 Paris SP07

Phone: 33 01 53 68 55 00
Fax: 33 01 53 68 55 01
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cii:cepiei:2004-4qd. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.