This is one reason behind our view that the krona's equilibrium exchange rate
against the euro has weakened.
It applies the concept of an equilibrium exchange rate
for a recent dataset of African countries which is unique regarding this methodological application.
These models include Goldman Sachss Dynamic Equilibrium Exchange Rate
and the Peterson Institute for International Economics Fundamental Equilibrium Exchange Rate
In this case, the downward jump in the exchange rate may reflect a lower equilibrium exchange rate
as exit from the EU may imply some diversification away from high-value financial services and a negative terms of trade shock as there are increased overall costs of trade in both goods and services sectors.
After all, with the Chinese economy undergoing wholesale economic transformation, estimating a long-term equilibrium exchange rate
that will anchor speculation is virtually impossible, particularly given persistent doubts about data quality, disclosure, and opaque policymaking processes.
When these parameters approach infinity, however, relative inflation and the equilibrium exchange rate
The speed of adjustment coefficient indicates that 17 percent of divergence from long-run equilibrium exchange rate
path is being corrected in each quarter.
Keblowski and Welfe (2011) propose a new modelling of exchange rate that extends the capital enhanced equilibrium exchange rate
(CHEER) model, which is the combination of the PPP and UIP.
medium-term equilibrium exchange rate
relative to the U.S.
The studies are grounded on one of the approaches that seeks to determine the value of a currency, commonly referred to as the fundamental equilibrium exchange rate