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- W2069005377 abstract "The short-run dynamics of German mark and US dollar real exchange rates are investigated for a panel of 19 OECD economies in a vector error correction framework for the 1973-96 period. The novel persistence profiles approach of Pesaran and Shin (‘Cointegration and Speed of Convergence to Equilibrium’, Journal of Econometrics, Vol. 71, (1996), pp. 117–143) indicates that the effect of system-wide shocks declines rapidly initially but decays slowly thereafter. It yields an average of just one year for the half-life of such shocks but some seven years before they fully dissipate. These half-life estimates are just one-quarter of the consensus estimates. Our results are consistent with non-linear adjustment and with monetary factors being the main source of real exchange rate volatility." @default.
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- W2069005377 date "2000-06-01" @default.
- W2069005377 modified "2023-09-23" @default.
- W2069005377 title "Short-run Real Exchange Rate Dynamics" @default.
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- W2069005377 doi "https://doi.org/10.1111/1467-9957.00205" @default.
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