A Network Model of Multilaterally Equilibrium Exchange Rates /

This paper proposes a network model of multilaterally equilibrium exchange rates. The model introduces a topological component into the exchange rate analysis, consistently taking into account simultaneous higher-order interactions among all currencies. The paper defines the currency demand indicato...

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Κύριος συγγραφέας: Kireyev, Alexei
Άλλοι συγγραφείς: Leonidov, Andrei
Μορφή: Επιστημονικό περιοδικό
Γλώσσα:English
Έκδοση: Washington, D.C. : International Monetary Fund, 2016.
Σειρά:IMF Working Papers; Working Paper ; No. 2016/130
Διαθέσιμο Online:Full text available on IMF
Περιγραφή
Περίληψη:This paper proposes a network model of multilaterally equilibrium exchange rates. The model introduces a topological component into the exchange rate analysis, consistently taking into account simultaneous higher-order interactions among all currencies. The paper defines the currency demand indicator. On its base, it derives a multilateral exchange rate network, finds its dynamically stationary position, and identifies the multilaterally equilibrium levels of bilateral exchanges rates. Potentially, the model can be developed further to calculate the deviations of the observed bilateral exchange rates from their multilaterally equilibrium levels, which can be interpreted as their over- or undervaluation. For illustration, the model is applied to daily 1995-2016 exchange rates among 130 currencies sourced from the Thomson Reuters Datastream.
Περιγραφή τεκμηρίου:<strong>Off-Campus Access:</strong> No User ID or Password Required
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Φυσική περιγραφή:1 online resource (23 pages)
Μορφή:Mode of access: Internet
ISSN:1018-5941
Πρόσβαση:Electronic access restricted to authorized BRAC University faculty, staff and students