Lucio Sarno

TL;DR: In the last few decades exchange rate economics has seen a number of developments, with substantial contributions to both the theory and empirics of exchange rate determination as mentioned in this paper. But, while our understanding of exchange rates has significantly improved, a few challenges and open questions remain in the exchange rate debate, enhanced by events including the launch of the Euro and the large number of recent currency crises.

TL;DR: The authors fit nonlinearly mean-reverting models to real dollar exchange rates over the post-Bretton Woods period, consistent with a theoretical literature on transactions costs in international arbitrage.

TL;DR: In this paper, the authors proposed a multivariate test whose null hypothesis is violated only when all of the processes in question are stationary, and applied the tests to real exchange rates among the G5 over the recent float.

TL;DR: This paper assess the progress made by the profession in understanding whether and how exchange rate intervention works and conclude that official intervention can be effective, especially through its role as a signal of policy intentions, and especially when it is publicly announced and concerted.

TL;DR: In the last few decades exchange rate economics has seen a number of developments, with substantial contributions to both the theory and empirics of exchange rate determination as mentioned in this paper. But, while our understanding of exchange rates has significantly improved, a few challenges and open questions remain in the exchange rate debate, enhanced by events including the launch of the Euro and the large number of recent currency crises.