The Swedish Real Exchange Rate under Different Currency Regimes

Anna Larsson ()
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Anna Larsson: Department of Economics, Stockholm University and, Postal: FIEF, Wallingatan 38, SE-111 24 Stockholm, Sweden
Authors registered in the RePEc Author Service: Anna Seim

No 180, Working Paper Series from Trade Union Institute for Economic Research

Abstract: This paper presents evidence on the behavior of the Swedish real exchange rate relative to Germany under different currency regimes 1973:1-2001:4. The results suggest that the real exchange rate is cointegrated with Swedish and German productivity, which is consistent with Balassa (1964) and Samuelson (1964). In the short run, the regime has mattered for the dynamics of the real exchange rate. Deviations from equilibrium have been adjusted more quickly when the nominal exchange rate has been allowed to float freely, which indicates that it acts as a shock absorber.

Keywords: Real exchange rate; Exchange rate regimes; Cointegration (search for similar items in EconPapers)
JEL-codes: C22 E31 F41 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2002-11-11, Revised 2003-09-18
New Economics Papers: this item is included in nep-cba and nep-net
Note: This paper is a considerably revised version of my master thesis written at Stockholm University.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published in Review of World Economics, 2004, pages 706-727.

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Journal Article: The Swedish real exchange rate under different currency regimes (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:fiefwp:0180

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