Some notes on the behavioral equilibrium exchange rate model

Zhang, Zhibai (2011): Some notes on the behavioral equilibrium exchange rate model.

Abstract

A regular phenomenon of the behavioral equilibrium exchange rate (BEER) model is analyzed. The result derived by the model is proved to contradict the economic fact and that by the Balassa-Samuelson model. The BEER model cannot be used, therefore, to calculate equilibrium exchange rate.

• Item Type: MPRA Paper
• Language: English
• Keywords: Behavioral equilibrium exchange rate; Chinese renminbi
• Subjects: F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics; F - International Economics > F3 - International Finance > F31 - Foreign Exchange

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