Arghyrou, Michael; Boinet, Virginie; Martin, Christopher - In: Journal of Economics and Finance 30 (2006) 1, pp. 38-56
This paper analyses a model of non-linear exchange rate adjustment that extends the literature by allowing asymmetric responses to over- and under-valuations. Applying the model to Greece and Turkey, we find that adjustment is asymmetric and that exchange rates depend on the sign as well as the...