Exchange rate economics is always and everywhere controversial

Document Type

Journal Article

Publication Title

Applied Economics

Publisher

Routledge

School

School of Business and Law

RAS ID

25929

Comments

Manzur, M. (2018). Exchange rate economics is always and everywhere controversial. Applied Economics, 50(3), 216-232. doi:10.1080/00036846.2017.1313960

Available here.

Abstract

This article reviews the major developments in the recent literature on exchange rate economics. It is argued that the link between the exchange rate and economic fundamentals is breaking new ground. Evidence indicates that alternative analytical frameworks (such as the new open-economy macroeconomics) and exchange rate arrangements (such as the euro) have their theoretical and analytical elegance, but are proving empirically very difficult to implement. The role of methodological advances and alternative fundamental instruments (such as world commodity prices) is also highlighted.

DOI

10.1080/00036846.2017.1313960

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