The equilibrium exchange rate
FP4 — Training and Mobility of Researchers
- Duration
- 1996-02-01 → 1999-01-31
- EU contribution
- —
- Participants
- 2
- Scheme
- RGI
Lines connect the coordinator with its partners. CORDIS does not always give exact coordinates for projects before 2014. These points are placed at city or country level.
Project objective
The concepts of currency overvaluation and undervaluation imply a willingness to make judgments about where an equilibrium exchange rate lies. The main objective of the project is an evaluation of equilibrium exchange rates. This will involve an extension of Williamson's concept of the Fundamental Equilibrium Exchange Rate. This concept will be extended in two directions. First, statistical analysis of the long-run properties of the economies of interest will be undertaken. Second, an analysis of the objectives of the authorities and the targets of the private sector will be undertaken. The former extension will use multivariable cointegration analysis, while the later will involve a study of the effects of governments debt stocks and private sector wealth accumulation on the equilibrium current account and exchange rate. Being able to make sensible estimates of equilibrium exchange rates is the key importance to rational, outwarded-oriented macroeconomic management.
Original text from CORDIS.
Participants
- NATIONAL INSTITUTE OF ECONOMIC AND SOCIAL RESEARCH · LondonCoordinatorUnited Kingdom
- Not availableCity levelFrance
Links
Data: CORDIS, © European Union