Real exchange rates: are they dominated by fundamental factors?

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F17%3A10238158" target="_blank" >RIV/61989100:27510/17:10238158 - isvavai.cz</a>

Result on the web

<a href="https://www.tandfonline.com/doi/full/10.1080/13504851.2017.1282111" target="_blank" >https://www.tandfonline.com/doi/full/10.1080/13504851.2017.1282111</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1080/13504851.2017.1282111" target="_blank" >10.1080/13504851.2017.1282111</a>

Result language

angličtina

Original language name

Real exchange rates: are they dominated by fundamental factors?

Original language description

Using Bayesian model averaging, we determine which fundamental pair-wise differences suggested by the literature on optimum currency areas give the best explanation of medium-term variability of bilateral real exchange rates. The intercept in the best specification is statistically insignificant, implying that for a hypothetical pair of economies for which the differences were zero, the bilateral real exchange rate would not move. Thus, the ‘non-fundamental’ element of the medium-term real exchange rate variability is, in our sample at least, negligible on average. In other words, floating exchange rate does not in itself imply, on average, more real exchange rate variability in the medium term than an exchange rate peg.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

<a href="/en/project/GA16-22540S" target="_blank" >GA16-22540S: "Eye for eye?" Restoring Fiscal and Financial Stability without Jeopardizing Monetary Stability</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2017

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Applied Economics Letters

ISSN

1350-4851

e-ISSN

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Volume of the periodical

24

Issue of the periodical within the volume

19

Country of publishing house

GB - UNITED KINGDOM

Number of pages

3

Pages from-to

1389-1392

UT code for WoS article

000407451000008

EID of the result in the Scopus database

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