What Do We Really Know About Real Exchange Rates?

Arbeitspapier

This paper seeks to provide a comprehensive overview of the recent literature on the economics of real exchange rates. In particular, the paper attempts to provide answers to the following questions: to what extent are real exchange rates mean reverting and how may the degree of observed mean reversion be explained?; do real exchange rates have a business cycle component and, in particular, are they related to real interest differentials?; how important are real, relative to nominal shocks, in driving real exchange rates?; is the systematic component of the real exchange rate related to factors such as productivity, net foreign asset accumulation, national savings imbalances and terms of trade effects?

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 28

Classification and Topics

• Classification: Wirtschaft ; Foreign Exchange ; Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
• Subject: Real Exchange Rates ; Mean Reversion

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Donald, Ronald Mac
• Event: Veröffentlichung
• (who): Oesterreichische Nationalbank (OeNB)
• (where): Vienna
• (when): 1998

Further information

• Handle: http://hdl.handle.net/10419/264620
• Last update: 10.03.2025, 11:45 AM CET