scholarly journals Sectoral Productivity, Government Spending and Real Exchange Rates: Empirical Evidence for OECD Countries

10.3386/w6017 ◽  
1997 ◽  
Author(s):  
Menzie David Chinn
Keyword(s):  
Exchange Rates ◽  
Empirical Evidence ◽  
Government Spending ◽  
Real Exchange Rates ◽  
Oecd Countries ◽  
Sectoral Productivity

Are the Real Exchange Rates of the New EU Member Countries in Line with Fundamentals? – Implications of the NATREX Approach

2012 ◽  
Vol 232 (2) ◽  
Author(s):  
Michael Frenkel ◽  
Isabell Koske
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Real Exchange Rate ◽  
Real Exchange Rates ◽  
Oecd Countries ◽  
The Real ◽  
Estimation Strategy ◽  
Limited Availability ◽  
Two Step Estimation ◽  
The Eu

SummaryThis paper derives equilibrium real exchange rates for the EU member countries that joined in 2004 and in 2007. Our analysis is based on the natural real exchange rate approach and uses data for the period 1980-2007. We employ a two-step estimation strategy to deal with the limited availability and reliability of data from these countries. We first estimate the model for a panel of 17 OECD countries and then apply the estimated relationship to the new EU member countries. While the model does not support the appreciation of some of the examined currencies in 2005-2007, the development of several other currencies of the CEECs appears to be fairly in line with our NATREX estimates.

scholarly journals Real Exchange Rates and Sectoral Productivity in the Eurozone

2018 ◽  
Vol 108 (6) ◽  
pp. 1543-1581 ◽  
Author(s):  
Martin Berka ◽  
Michael B. Devereux ◽  
Charles Engel
Keyword(s):  
Time Series ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Cross Section ◽  
Real Exchange Rates ◽  
Rate Variation ◽  
Productivity Shocks ◽  
Sectoral Productivity ◽  
Nominal Exchange Rates ◽  
Cross Country

We investigate the link between real exchange rates and sectoral TFP for eurozone countries. We show that real exchange rate variation, both cross-country and time-series, closely accords with an amended Balassa-Samuelson interpretation, incorporating sectoral productivity shocks and a labor market wedge. We construct a DSGE model to generate a cross section and time series of real exchange rates to compare to data. Estimates from simulated regressions are very similar to estimates for eurozone data. Our findings contrast with previous studies that have found little relationship between productivity and real exchange rates among high-income countries that have floating nominal exchange rates. (JEL E12, E23, E24, F31, F33, F43)

scholarly journals Real Exchange Rates and Sectoral Productivity in the Eurozone

2014 ◽  
Author(s):  
Martin Berka ◽  
Michael Devereux ◽  
Charles Engel
Keyword(s):  
Exchange Rates ◽  
Real Exchange Rates ◽  
Sectoral Productivity
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