The Determination of the Equilibrium Exchange Rates Based on a General Equilibrium Model

Wu Li

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, a general equilibrium model is developed to analyze the determination of the equilibrium exchange rates. The model can deal with multiple types of moneys and moneys are integrated into the model through demand functions. When the endowments, preferences, production technologies and interest rates are given, the equilibrium exchange rates, equilibrium prices, equilibrium outputs and equilibrium utility levels can be computed by the model. A numerical example of a two-country economy is also presented to illustrate the model.

Keywords: exchange rate; general equilibrium; multi-country economy; CGE model (search for similar items in EconPapers)
JEL-codes: C5 D5 F31 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-opm
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:68528

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