Long-run exchange rate modeling: a survey of the recent evidence

MacDonald, R. (1995) Long-run exchange rate modeling: a survey of the recent evidence. IMF Staff Papers, 42(3), p. 437. (doi:10.2307/3867529)

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Publisher's URL: http://www.jstor.org/stable/3867529

Abstract

In this paper the recent literature on long-run exchange rate modeling is surveyed. In particular, we review the voluminous literature that tests for a unit root in real exchange rates and the closely related work on testing for a unit root in the residual from a regression of the nominal exchange rate on relative prices. We argue that the balance of evidence is supportive of the existence of some form of long-run exchange rate relationship. The form of this relationship, however, does not accord exactly with a traditional representation of the long-run exchange rate, and we offer some potential explanations.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:MacDonald, Professor Ronald
Authors: MacDonald, R.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:IMF Staff Papers
Publisher:International Monetary Fund
ISSN:1020-7635

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