Taylor rules and the Canadian–US equilib
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Tino Berger; Bernd Kempa
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Article
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2012
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Elsevier Science
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English
⚖ 677 KB
This paper identifies the Canadian–US equilibrium exchange rate based on a simple structural model of the real exchange rate, in which monetary policy follows a Taylor-rule interest rate reaction function. The exchange rate is explained by relative output and inflation as observable variables, and b