Melvin, Michael; Schlagenhauf, Don; Talu, Ayhan - In: The Review of Economics and Statistics 71 (1989) 3, pp. 500-505
This paper presents and estimates a simple model of real exchange rate determination that includes the expected future U.S. federal budget deficit as a determinant. The model is applied to the real value of the dollar versus the mark, yen, and pound over the period June 1974-October 1987. The...