This chapter surveys recent theoretical and empirical contributions on foreign exchange rate
determination. The chapter first examines monetary models under uncovered interest parity …

Purchasing Power Parity and Real Exchange Rates Page 1 Real exchange rates and
Purchasing Power Parity: mean-reversion in economic thought Mark P. Taylor Department of …

We provide a theory of the determination of exchange rates based on capital flows in
imperfect financial markets. Capital flows drive exchange rates by altering the balance …

This paper analyzes the role of real exchange rate (RER) policies in promoting economic
development. Markets provide a suboptimal amount of investment in sectors characterized …

They were supposed to be exceptional and temporary—hence the term 'unconventional'.
They risk becoming standard and permanent, as the boundaries of the unconventional are …

Over the last two decades, communication has become an increasingly important aspect of
monetary policy. These real-world developments have spawned a huge new scholarly …

We provide a broad empirical investigation of momentum strategies in the foreign exchange
market. We find a significant cross-sectional spread in excess returns of up to 10% per …

We show significant US monetary policy (MP) spillovers to international bond markets. Our
methodology identifies US MP shocks as the change in short-term Treasury yields around …

This paper examines the case for using two instruments—the policy interest rate and
sterilized foreign exchange market intervention—in emerging market countries seeking to …

Many emerging market economies have relied on foreign exchange intervention (FXI) in
response to gross capital inflows. In this paper, we study whether FXI has been an effective …