This paper aims to compare two different methodologies to estimate exchange rate misalignment. The first methodology consists in using multivariate time series techniques and a model with domestic variables. The second methodology consists in Pesaran’s Global Vector Error Correction Model with...

This paper aims to discuss a methodology to calculate the error bands for exchange rate misalignments estimative. The exchange misalignment is not directly observed and its precision depends on the coefficients that link fundamentals to real effective exchange rate. The precision of exchange...

This paper aims to compare two different methodologies to estimate exchange rate misalignment. The first methodology consists in using multivariate time series techniques and a model with domestic variables. The second methodology consists in Pesaran's Global Vector Error Correction Model with...

This paper aims to discuss a methodology to calculate the error bands for exchange rate misalignments estimative. The exchange misalignment is not directly observed and its precision depends on the coefficients that link fundamentals to real effective exchange rate. The precision of exchange...

This paper aims to evaluate what are the main long run determinants of Chinese real exchange rate that have depreciated substantially compared to a basket of currencies. The Chinese government started a process of accumulating foreign reserve in growing speed measured in absolute or relative...

The Present Value Model (PVM) – in which current security prices depend upon the present value of future discounted dividends, where the discount rate is equivalent to the required rate of return – is one of the long-standing principles of Finance Theory. The objective of this work is to...