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Chocs externes et ajustements des taux de change réels européens
[External shocks and adjustment of European real exchange rates]

Author

Listed:
  • Bouoiyour, Jamal
  • Rey, Serge

Abstract

This paper asks whether external shocks (U.S. interest rates, U.S. industrial production, U.S. stocks prices and world industrial material price) have asymmetric effects on European relative prices (real exchange rates). On 1979-1993 period, the paper finds that two groups of countries may be distinguished; on one side Germany, France, Belgium and Netherlands; on another side, United Kingdom, Italy and Spain. The results imply misalignments in European real exchange rates when external shocks arise. Also, Europe is not an optimum currency area.

Suggested Citation

  • Bouoiyour, Jamal & Rey, Serge, 1995. "Chocs externes et ajustements des taux de change réels européens [External shocks and adjustment of European real exchange rates]," MPRA Paper 30241, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:30241
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    References listed on IDEAS

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    More about this item

    Keywords

    Relative prices; Real exchange rate; External shocks; Common European currency; Optimum currency area;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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