Long-run determinants of the Irish real exchange rate
- 1 March 2002
- journal article
- research article
- Published by Taylor & Francis in Applied Economics
- Vol. 34 (5) , 549-553
- https://doi.org/10.1080/00036840110036729
Abstract
Smooth adjustment to real exchange rate shifts is one of the major challenges facing the Irish economy under EMU. Rather than assume purchasing power parity, the long-run real exchange rate is modelled as time-varying, being determined by relative output levels, the terms of trade and the net foreign asset position. It is shown that these factors account for a large proportion of the long-run movement in the Irish real exchange rate.Keywords
This publication has 4 references indexed in Scilit:
- Relative labor productivity and the real exchange rate in the long run: evidence for a panel of OECD countriesJournal of International Economics, 1999
- Modelling Traded, Non-traded and Aggregate Inflation in a Small Open Economy: The Case of IrelandThe Manchester School, 1999
- Stabilization and adjustment in a small open economy: Ireland, 1979-1995Oxford Review of Economic Policy, 1996
- Statistical Inference in Instrumental Variables Regression with I(1) ProcessesThe Review of Economic Studies, 1990