01941cas a2200253 a 4500 AALejournalIMF016934 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498351331 1018-5941 BD-DhAAL BD-DhAAL Kireyev, Alexei. A Network Model of Multilaterally Equilibrium Exchange Rates / Alexei Kireyev, Andrei Leonidov. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (23 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 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. Mode of access: Internet Leonidov, Andrei. IMF Working Papers; Working Paper ; No. 2016/130 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/130/001.2016.issue-130-en.xml IMF e-Library