Introduction

  • Ronald MacDonald
  • Ian Marsh
Part of the Advanced Studies in Theoretical and Applied Econometrics book series (ASTA, volume 37)

Abstract

This book is a selective survey of current thinking on exchange rate economics, supplemented throughout by new econometric modelling evidence.1 The focus is on the application of econometric tools to several controversies in the exchange rate literature. These puzzles include the validity of uncovered interest parity and purchasing power parity; the reasons for persistent deviations from purchasing power parity; and the forecastability of nominal exchange rates. In addition, the book addresses econometric considerations such as the importance of the choice between single-equation and system-wide approaches to modelling, and the reduced form versus structural equation problem.

Keywords

Exchange Rate Real Exchange Rate Purchase Power Parity Purchase Power Parity Nominal Exchange Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media Dordrecht 1999

Authors and Affiliations

  • Ronald MacDonald
    • 1
  • Ian Marsh
    • 2
  1. 1.University of StrathclydeUK
  2. 2.City University Business SchoolUK

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