Article ID Journal Published Year Pages File Type
5083887 International Review of Economics & Finance 2012 11 Pages PDF
Abstract
► This paper introduces a new fundamental variable to explain the exchange rate. ► The deviation of the interest rate from the Taylor rule is calculated. ► This Taylor rule deviation is used to construct a fitted exchange rate. ► Including the Taylor rule deviation strongly improves the fit with the data.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
The influence of Taylor rule deviations on the real exchange rate
Authors
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