Some Notes on Overshooting

Using two examples we have shown that large fluctuations in real exchange rates cannot normally be attributed to "overshooting" in the Dornbusch sense. We proposed to use the interest differential between to countries as a direct and reliable measure of the extend of overshooting. Observing that differential immediately reveals that the past appreciation of the dollar against the mark has hardly anything to do with overshooting.

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Year of publication:	1989
Authors:	Homburg, Stefan
Published in:	EconStor Open Access Articles. - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft (ZBW). - 1989, p. 443-447
Publisher:	Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft (ZBW)
Subject:	Exchange Rate \| Overshooting

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Extent:	application/pdf
Type of publication:	Article
Classification:	F31 - Foreign Exchange
Source:	RePEc - Research Papers in Economics

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