Sources of Real Exchange Rate Fluctuations in the Nordic Countries
Annika Alexius ()
Scandinavian Journal of Economics, 2001, vol. 103, issue 2, 317-331
In an attempt to move beyond the purchasing power parity hypothesis, this paper addresses two issues. The first concerns the causes of movements in real exchange rates. In contrast to the typical result, supply shocks are found to dominate the long‐run variance decompositions for each of the four Nordic countries under study. This suggests that productivity developments are the most important determinant of long‐run movements in real exchange rates. A second topic is the relative importance of stationary and non‐stationary components of real exchange rates. Also in contrast to previous findings, transitory shocks are more important than permanent shocks for three of the four countries.
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Sources of Real Exchange Rate Fluctuations in the Nordic Countries (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:103:y:2001:i:2:p:317-331
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0347-0520
Access Statistics for this article
Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten
More articles in Scandinavian Journal of Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().