Mulder, Nanno; Baldi, Anne-Laure - Econometric Society - 2004
This paper analyses the impact of exchange rate regimes on real exchange rates, as defined by the relative price of …, the real exchange rate is determined in the long-run by the well-known Balassa-Samuelson effect, and in the medium and … exchange rates to deviate from their trend is fixed exchange rate regimes. In countries that are international price-takers and …