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	Exchange Rate Determination A lecture note on two common theories of exchange rate determination: purchasing power parity and interest rate parity by Thayer Watkins of San Jose State University's Economics Department.
Perceived Central Bank Intervention and Market Expectations: An Empirical Study of the Yen/Dollar Exchange Rate, 1993 - 1996 Working paper by Gabriele Galati and William Melick. Requires Acrobat Reader.
An Introduction to Open Economy Macroeconomics, Currency Crises and the Asian Crisis Lecture notes from Stern Business School professor Nouriel Roubini.
Open Economy Macro Models Notes from a Stern Business School lecture on open economy macroeconomic models.
Big Mac Index The Economist's explanation of purchasing power parity using this popular homogeneous item.
The Impact of Monetary Policy on the Exchange Rate - Evidence from Three Small Open Economies Working paper by Jeromin Zettelmeyer of the International Monetary Fund. Requires Acrobat Reader.
Money Shocks and the Current Account A study of monetary shocks and its effect on the current account, by Philip Lane.
The Yen-Dollar Rate - Have Interventions Mattered? Working paper by Ramana Ramaswamy and Hossein Samiei of the Asia and Pacific Department of the International Monetary Fund.
Pass-Through of Exchange Rates and Import Prices to Domestic Inflation in Some Industrialised Economies Working paper that examines the impact of exchange rates and import prices in selected industrialized economies. Requires Acrobat Reader.
Measuring Monetary Policy Shocks in France, Germany and Italy: The Role of the Exchange Rate Working paper that estimates the weight on the ECU exchange rate in France, Germany and Italy. Requires Acrobat Reader.
Market Structure and the Persistence of Sectoral Real Exchange Rates Explanations for the deviation from purchasing power parity.
Purchasing Power Parity: Three Strikes Through the Heart of the Unit Root Null A paper by NY Federal Reserve economists that argues for rejecting the hypothesis that PPP is not empirically true.
Current Account and Exchange Rate Dynamics A theoretical and emprical study of the effects of monetary policy shocks on fluctuations of the current account.
Forecasting Exchange Rate Dynamics Application of interest rate forecasting models to exchange rate dynamics and evaluation of the models from the viewpoint of out-of-sample forecasting.
The New Open Economy Macroeconomics A survey of recent works in the area of open economy macroeconomics and dynamic general equilibrium models, by Philip Lane.
What is Purchasing Power Parity? A definition of purchasing power parity (PPP) and links to relevant information.
Real Exchange Rates and Productivity - Closed-Form Solutions and Some Empirical Evidence Working paper by Jahanara Begum of the Monetary and Exchange Affairs Department of the International Monetary Fund.
The Interest Rate Parity Condition A lecture on the relationship between interest rate differentials and exchange rate movements by Steven M. Suranovic.
Predictable Movements in Yen/DM Exchange Rates Working paper by Carlo Cottarelli of the International Monetary Fund (IMF).
Introduction to Purchasing Power Parity (PPP) An in-depth introduction to the PPP theory of foreign exchange by Steven Suranovic.
Robert Mundell: Uses and Abuses of Gresham's Law in the History of Money A treatise by the 1999 Nobel Prize winner in Economics.
No-Arbitrage Condition in Foreign Exchange A slideshow presentation of arbitrage conditions, and the no-arbitrage covered interest rate parity equation.
Real Effective Exchange Rate and the Constant Elasticity of Substitution Assumption Working paper by Antonio Spilimbergo and Athanasios Vamvakidis of the Research Department of the International Monetary Fund (IMF).
On the Trade Balance Response to Monetary Shocks A 1998 paper by Giovanni Lombardo of York University.
Robert Mundell: International Economics An online version of the 1999 Nobel Prize winner in Economics' book on exchange rates in the international environment.
Czech Koruna and Polish Zloty Currency Options - Information Contnent and EU-Accession Implications Working paper by Armando Morales of the Monetary and Exchange Affairs Department of the International Monetary Fund.
Some Multi-Country Evidence on the Effects of Real Exchange Rates on Output Working paper by Steven B. Kamin and Marc Klau. Requires Acrobat Reader.
The Exchange Rate in a Dynamic-Optimizing Current Account Model A model that shows exchange rates overshooting in response to monetary policy shocks.
Exchange-Rate-Based Stabilization: A Model of Financial Fragility Working paper by Yuri Sobolev Vladimirovich of the Policy Development and Review Department of the International Monetary Fund (IMF).
Monetary Policy Changes and the Real Exchange Rate in Small Open Economies A 1999 paper by Tommaso Monacelli of New York University.
Bureau of Labor Statistics: International Price Comparisons Based on Purchasing Power Parity The bureau's 1999 study.
The Performance of Simple Monetary Policy Rules in a Large Open Economy Comparison of the relative sensitivity of Eurozone and US monetary policy to the external value of their respective currencies.
Currency Composition of Foreign Exchange Reserves - Retrospect and Prospect Working paper by Barry J. Eichengreen and Donald J. Mathieson of the Research Department of the International Monetary Fund (IMF).
Daily FX: Forex Modeling Provides forex research reports, economic and market data, and valuation models.
Currency Boards, Credibility and Macroeconomic Behavior Working paper by Luis Rivera Batiz and Amadou Sy of the Research Department of the International Monetary Fund.
Relative Purchasing Power Parity A slideshow presentation of the RPPP theory used to explain exchange rate movements.
A Multi-Country Comparison of the Linkages Between Inflation and Exchange Rate Competitiveness Working paper that describes research comparing the response of inflation to changes in exchange rate competitiveness. Requires Acrobat Reader.
Real Exchange Rate Response to Capital Flows in Mexico - An Empirical Analysis Working paper by Marcelo Dabos and V. Hugo Juan-Ramon of the International Monetary Fund Institute.
International Business Cycles and Exchange Rates An open economy model of exchange rate movement and macroeconomic variability, by Christian Zimmermann.
Real Disturbances, Relative Prices, and Purchasing Power Parity (PPP) A paper that finds that oil prices, fiscal spending, and productivity differences account for deviations from PPP.
A Definition of the Forward Rate Bias A short explanation of the tendancy of forward currency rates to overestimate expected changes in spot exchange rates.
Productivity Growth Rates and Foreign Exchange Movements Productivity growth rates as a reason for exchange rate deviations; from a Stern Business School lecture.
A Cointegration Analysis of Purchasing Power Parity: 1973-96 This test of PPP was written in 1999 by Miguel Ramirez and Shahryay Khan.
Exchange Rate Regimes and the Expectations Hypothesis of the Term Structure Working paper that uses weekly data on short-term rates for 10 countries to document movements in the term structure. Requires Acrobat Reader.
A Definition of Interest Rate Parity A one page definition by Contingency Analysis.
International Corporate Finance: Exchange Rate Determination A series of lecture notes on theories and practice surrounding exchange rate determination, by the School of Management, SUNY at Buffalo.
Interest Rate Parity Equations and Examples A slideshow presentation of examples to illustrate the no-arbitrage conditions of interest rate parity and exchange rate determination.
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