Sources of Real Exchange Rate Fluctuations in the Nordic Countries

Annika Alexius ()

Scandinavian Journal of Economics, 2001, vol. 103, issue 2, 317-331

Abstract: 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.

Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://doi.org/10.1111/1467-9442.00247

Related works:
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) HTML/Text

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 ().