Robert M. La Follette School of Public Affairs

Macro Approaches to Foreign Exchange Determination

The author reviews macroeconomic approaches to exchange rate determination, with an emphasis on empirical models. Monetary and portfolio balance models of nominal exchange rates are described and evaluated. The literature on real models of real exchange rates is reviewed. The paper ends with a brief survey of recent developments in exchange rate modeling.

Additional Info

  • Volume or issue no.: La Follette School Working Paper No. 2013-005
  • Author(s): Menzie D. Chinn