Normal view MARC view ISBD view

Feyzioglu, Tarhan.

Estimating the Equilibrium Real Exchange Rate An Application to Finland / Tarhan Feyzioglu. [electronic resource] : Tarhan Feyzioglu. - Washington, D.C. : International Monetary Fund, 1997. - 1 online resource (24 p.) - IMF Working Papers; Working Paper ; No. 97/109 . - IMF Working Papers; Working Paper ; No. 97/109 .

An equilibrium exchange rate is here defined as the level that is consistent with simultaneous internal and external balances as specified in Montiel (1996). Exogenous "fundamental" variables determining these balances are identified. Along the lines of Edwards (1994), a reduced form is estimated with the cointegration technique for Finland for the period 1975-95. The estimation produced a reasonable set of equilibrium exchange rates that appreciate with positive shocks to the terms of trade, world real interest rates, and the productivity differential between Finland and its trading partners.

ISBN: 1451853173 : 15.00 USD

ISSN: 1018-5941

Standard No.: 10.5089/9781451853179.001 doi

Subjects--Topical Terms:
Cointegration
Equilibrium Exchange Rate
Exchange Rate
Exchange Rates
Real Exchange Rate

Subjects--Geographic Terms:
Finland