Abstract
We argue that the main equilibrium exchange rate approaches (ppp, beer, and feer) correspond to different time horizons of a single theoretical framework. We propose an illustration for the euro/dollar exchange rate. Our results suggest that the various approaches should not be opposed but rather combined to provide useful benchmarks for exchange-rate policies.
| Original language | English |
|---|---|
| Pages (from-to) | 657-666 |
| Number of pages | 10 |
| Journal | Revue Economique |
| Volume | 60 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 2009 |