01857cas a2200241 a 4500 AALejournalIMF000246 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451848960 1018-5941 BD-DhAAL BD-DhAAL Kramer, Charles. FEERs and Uncertainty : Confidence Intervals for the Fundamental Equilibrium Exchange Rate of the Canadian Dollar / Charles Kramer. Washington, D.C. : International Monetary Fund, 1996. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Models of Fundamental Equilibrium Exchange Rates (FEERs) impose internal and external balance, and so appeal to fundamental notions of equilibrium from a macroeconomic perspective. However, the need to estimate internal and external imbalances creates uncertainty in the approach. Parameters must be estimated, and equilibrium balances must be gauged using judgement. Hence it makes sense to consider the FEER as a statistical estimate rather than a fixed number, and to calculate confidence intervals for the FEER. This paper calculates such confidence intervals with data for Canada, under a variety of assumptions. The estimated confidence intervals are quite wide, principally because of uncertainty about price elasticities in the underlying trade equations. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1996/068 Full text available on IMF http://elibrary.imf.org/view/journals/001/1996/068/001.1996.issue-068-en.xml IMF e-Library