Bagchi, Debabrata; Chortareas, Georgios E.; Miller, … - In: The Economic Record 80 (2004) 248, pp. 76-88
We examine the effects of the terms of trade and the expected real interest rate differential on the real exchange rate in small, open, developed economies. We employ cointegration analysis to search for long-term linkages. We find that while both the terms of trade and the expected real...