Munich Personal RePEc Archive

A Simple Model and Its Application in the Valuation of Eleven Main Real Exchange Rates

Zhang, Zhibai (2012): A Simple Model and Its Application in the Valuation of Eleven Main Real Exchange Rates. Forthcoming in: International Research Journal of Finance and Economics

WarningThere is a more recent version of this item available.
[img]
Preview
PDF
MPRA_paper_40963.pdf

Download (155Kb) | Preview

Abstract

A simple currency valuation model is given. The model is based on the Penn effect but reduces the uncertainty of the econometric specification that the Penn effect and many other models have. We use the model to valuate eleven main currencies’ bilateral real exchange rate against the US dollar from 1980 to 2010. In the model finding, a seeming convergence phenomenon is found.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.