Working Paper Series, Department of Economics, Uppsala University
No 2002:15:
What Determines Real Exchange Rates? The Nordic Countries
Anders Bergvall ()
Abstract: This paper presents a model yielding testable implications
concerning the long-run co-movements of real exchange rates, relative
productivity, the trade balance and terms of trade. Countries with higher
productivity, trade deficits or improved terms of trade are found to have
more appreciated real exchange rates, with the main channel of transmission
working through the relative price of nontraded goods. Exogenous terms of
trade shocks are found to be the most important determinant of long run
movements in the real exchange rate for Denmark and Norway, while demand
shocks account for most of the long run variance in the real exchange rate
for Finland and Sweden.
Keywords: Real exchange rates; cointegration; variance decomposition; (follow links to similar papers)
JEL-Codes: F31; F32; F41; (follow links to similar papers)
33 pages, August 18, 2002
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
wp2002_15.pdf 
Download Statistics
- This paper is published as:
-
Bergvall, Anders, (2004), 'What Determines Real Exchange Rates? The Nordic Countries', Scandinavian Journal of Economics, Vol. 106, No. 2, pages 315-337
Questions (including download problems) about the papers in this series should be directed to Katarina Grönvall ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design by Joachim Ekebom
