01680cas a2200241 a 4500 AALejournalIMF007382 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451921670 1018-5941 BD-DhAAL BD-DhAAL MacDonald, Ronald. What Determines Real Exchange Rates? : The Long and Short of it / Ronald MacDonald. Washington, D.C. : International Monetary Fund, 1997. 1 online resource (53 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 This paper presents a reduced-form model of the real exchange rate. Using multilateral cointegration methods, the model is implemented for the real effective exchange rates of the dollar, the mark, and the yen, over the period 1974-1993. In contrast to much other research using real exchange rates, there is evidence of significant and sensible long-run relationships for a simplified version as well as for the full version of the model. The estimated long-run relationships are used to produce dynamic equations, which outperform a random walk and produce sensible dynamic patterns in the context of an impulse response analysis. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1997/021 Full text available on IMF http://elibrary.imf.org/view/journals/001/1997/021/001.1997.issue-021-en.xml IMF e-Library