Andersen, Torben; Bollerslev, Tim; Diebold, Francis X.; … - 2004 - rev
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spillover effects from the U.S. to the Euro area being somewhat stronger than in the opposite direction. In
addition, Christie … home currency as the Dollar and the foreign currency as the Euro. The first
order equilibrium condition for the nominal … Dollar/Euro exchange rate may be expressed as
(3.1)
where and refer to the derivatives of the representative domestic …