Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83964
Authors: 
Meenagh, David
Minford, Patrick
Nowell, Eric
Sofat, Prakriti
Year of Publication: 
2005
Series/Report no.: 
Cardiff Economics Working Papers E2005/2
Abstract: 
This paper establishes the ability of a Real Business Cycle model to account for real exchange rate behaviour, using UK data. We show that a productivity simulation is capable of explaining initial real appreciation with subsequent depreciation to a lower steady state. The model is tested by the method of indirect inference, bootstrapping the errors to generate 95% confidence limits for a time-series representation of the real exchange rate, as well as for various key data moments. The results suggest RBC models can explain real exchange rate movements.
Subjects: 
Real Exchange Rate
Productivity
Real Business Cycle
Bootstrap
Indirect Inference
JEL: 
E32
F31
F41
Document Type: 
Working Paper

Files in This Item:
File
Size
1.15 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.