This paper examines the sources of real exchange rate (RER) volatility in eighty countries around the world, during the period 1970 to 2011. Our main goal is to explore the role of nominal exchange rate regimes and financial crises in explaining the RER volatility. To that end, we employ two...

For the 12 new member states of the European Union, adopting the euro as the national currency some time in the next few years is not optional, as it was for the first 15 member states of the EU; it is a definite requirement which they eventually have to meet. This raises numerous questions...