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Are real exchange rates more likely to be stationary during the fixed nominal exchange rate regimes?

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  • Gawon Yoon

Abstract

By testing for the presence of multiple changes in persistence at a priori unknown dates in the real exchange rates spanning more than 100 years over different nominal exchange rate regimes, this note shows that the real exchange rates are more likely to be stationary during the fixed nominal exchange rate regimes than during the floating ones.

Suggested Citation

  • Gawon Yoon, 2009. "Are real exchange rates more likely to be stationary during the fixed nominal exchange rate regimes?," Applied Economics Letters, Taylor & Francis Journals, vol. 16(1), pages 17-22.
    • Handle: RePEc:taf:apeclt:v:16:y:2009:i:1:p:17-22
    DOI: 10.1080/13504850701719801
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    3. Gadea, Maria Dolores & Gracia, Ana Belen, 2009. "European monetary integration and persistance of real exchange rates," Finance Research Letters, Elsevier, vol. 6(4), pages 242-249, December.

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