Fundamental Determinants of Exchange Rates

Stein, Jerome L.; Allen, Polly Reynolds

ISBN 10: 0198293062 / ISBN 13: 9780198293064

Published by Clarendon Press, 1998

About this Item

Faint shelfwear on paperback covers and bottom corner of front paperback cover shows crease. New book, never read. Pages clean and crisp, spine unbroken. 0619A.

Seller Inventory # A0619-137

Bibliographic Details

• Title: Fundamental Determinants of Exchange Rates
• Publisher: Clarendon Press
• Publication Date: 1998
• Language: English
• ISBN 10: 0198293062
• ISBN 13: 9780198293064
• Binding: Soft cover
• Condition: Fine

About this title

Synopsis

"This book greatly enhances our understanding of the behavior of real exchange rates. It provides an elegant model based on a solid theoretical foundation that links real exchange rates to their fundamental economic determinants and takes proper account of stock and flow considerations. The authors provide a masterful account of how changes in productivity and thrift affect the real exchange rate, and show that the long-run impact depends crucially on whether the change reflects the former fundamental (investment) or the latter (consumption). The empirical implementation uses state-of-the-art cointegration and error correction methodologies that are eminently well suited to capture the short-run adjustment of the real exchange rate to its medium- to long-run equilibrium value. The empirical results are extremely encouraging, as the economic fundamentals identified by the authors can explain a substantial part of the movement in the real exchange rate of a number of countries."--Peter Clark, International Monetary Fund

About the Author

Jerome L. Stein is at Brown University. Polly Reynolds Allen is at University of Connecticut.