A Nonlinear Model of Real Exchange Rate Dynamics, with an Application to the Case of Taiwan
Resource
經濟論文叢刊, 27(4), 377-391
Journal
經濟論文叢刊
Journal Volume
27
Journal Issue
4
Pages
377-391
Date Issued
1999-12
Date
1999-12
Author(s)
Chen, C.N.
Chen, S.K.
Abstract
This paper devises a simple flexible-price real exchange rate model to illustrate the nonlinear dynamics and indeterminacy of equilibrium. The terms of trade variable is then used as an empirical proxy for real exchange rate. A nonlinear logistic equation is found to fit the Taiwanese data pretty well.
Subjects
實質匯率
內生波動
Real exchange rate
Endogenous fluctuations
Type
journal article