Template-type: ReDIF-Paper 1.0
Author-Name: Juan-Ángel Jiménez-Martín
Author-Email: juanangel@ccee.ucm.es
Author-Homepage: https://www.ucm.es/fundamentos-analisis-economico2/jajm
Author-Person: pji27 
Author-Workplace-Name: Departamento de Economía Cuantitativa (Department of Quantitative Economics), Facultad de Ciencias Económicas y Empresariales 
	(Faculty of Economics and Business), Universidad Complutense de Madrid
Author-Workplace-Homepage: https://www.ucm.es/fundamentos-analisis-economico2
Author-Name: Rafael Flores de Frutos
Author-Workplace-Name: Universidad Complutense de Madrid. Facultad de CC. Económicas y Empresariales.
	Dpto. de Fundamentos de Análisis Económico II. 
Author-Workplace-Homepage: https://www.ucm.es/fundamentos-analisis-economico2
Title: The Fit of Dynamic Equilibrium Models of Exchange Rate
Abstract: The two-country monetary model has become a fundamental tool for explaining the behavior of
	the exchange rate. However, the popularity of this approach is not justified by its empirical
	support. One of the reasons for the empirical “failure” of exchange rate models could be the
	econometric approach applied. In this paper, an alternative procedure for evaluating the fit of
	dynamic equilibrium models of exchange rate is suggested. This approach is applied to three
	theoretical models: Lucas (1982), Svensson (1985), and Grilli and Roubini (1992).
Classification-JEL:F31, F37, G15.
Keywords: Exchange rate, Equilibrium model, Seasonality. 
Length: 28 pages 
Creation-Date: 2004
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae0411.txt
File-URL: https://eprints.ucm.es/id/eprint/7725/1/0411.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doicae:0411