2024年2月7日 · The flexible exchange rate is determined by the forces of demand and supply of foreign exchange in the market. Under this, the equilibrium is established at a point where the quantity demanded is equal to the quantity supplied of foreign exchange, i.e., Demand for foreign exchange is similar to the supply of foreign exchange.

In theory, this approach is best suited to predicting real exchange rates, as the concept of the equilibrium exchange rate is defined in real terms. But empirical evidence shows that real exchange rate adjustments occur primarily through currency movements rather …

Briefly put, when we talk of the “equilibrium exchange rate” as something different from the current rate, we usually mean two things. First is that the equilibrium real exchange rate at some time in the future will be foreseeably different from today’s real exchange rate.

2022年7月20日 · The equilibrium exchange rate is the exchange rate at which the quantity of a currency demanded is equal to the quantity supplied.

2007年5月17日 · In what follows, as an example of the first class of models, we review the fundamental equilibrium exchange rate (FEER) model and its close variant, the desired equilibrium exchange rate (DEER) model; and as an example of the second class of models, the behavioral equilibrium exchange rate (BEER) and its close variant, the permanent equilibrium ...

NBER Working Paper 5748 September 1996 THE EQUILIBRIUM APPROACH TO EXCHANGE R4TES: THEORY AND TESTS ABSTRACT We characterize the equilibrium exchange rate in a general equilibrium economy without imposing strong restrictions on the output processes, preferences, or commodity market imperfections.

It argues that a variety of equilibrium exchange rates can be defined and their behaviour will vary according to different definitions of the exchange rate, and over short, medium and long-term horizons. It emphasises that the relevance of each type will depend on the question at hand.

ABSTRACT This paper develops framework to estimate and interpret the factor content of equilibrium real exchange rates.

An equilibrium exchange rate model built on strong microeconomic underpinnings is derived and estimated assuming that domestic and foreign manufactured traded goods are imperfect substitutes.

2025年1月17日 · This paper explains what is meant by the concept of equilibrium exchange rates. It argues that a variety of equilibrium exchange rates can be defined and their behaviour will vary according to different definitions of the exchange rate, …