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The long-run determination of the real exchange rate. Evidence from an intertemporal modelling framework using the dollar-pound exchange rate

Yes / This paper develops a model of optimal choice over an array of different assets, including domestic and foreign bonds, domestic and foreign equities and domestic and foreign real money balances in order to examine the determination of the real exchange rate in the long-run. The model is tested empirically using data from the UK and the USA. The results show that all the coefficients of the model are right signed and significant and consequently financial assets may play a significant role in the determination of the real exchange rate.

Identiferoai:union.ndltd.org:BRADFORD/oai:bradscholars.brad.ac.uk:10454/10492
Date January 2015
CreatorsPilbeam, K., Litsios, Ioannis
Source SetsBradford Scholars
LanguageEnglish
Detected LanguageEnglish
TypeReport, Published version
Rights© 2015 The Authors. Full-text reproduced with author permission.
Relationhttp://openaccess.city.ac.uk/id/eprint/14075

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