The paper proposes a multi-factor international asset pricing model in which the exchange rate is allowed to be co-determined by a risk factor imperfectly correlated to other priced risks in the economy. The significance of this factor can be established as long as one is able to observe a proxy...

This report was prepared for the Turkish-EU Enlargement Council of the European Round Table of Industrialists. Its aim is to assist an evaluation of the implications of potential Turkish membership of the European Union. The EU is to review a European Commission report on Turkeyu0092s progress...