Alberola, Enrique; Garcia-Cervero, Susana; López, Humberto - EconWPA - 2005
This paper calculates the equilibrium exchange rates for the Euro and the rest of the G-7 currencies. Building on the … multilateral equilibrium real rates into bilateral equilibrium nominal rates. The results uncover that the Euro was slightly … undervalued by the start of Stage III of EMU and that, despite a faint fall of its fundamentals since then, the slide during 1999 …