Australia and New Zealand Exchange Rates: A Quantitative Assessment

The paper describes three empirical models commonly used to conduct exchange rate assessments and applies them to data for Australia and New Zealand. The baseline results using data and mediumterm projections available as of October 2008, suggest that the Australian and New Zealand dollars were broa...

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Bibliographic Details
Main Author: Edison, Hali J. (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C International Monetary Fund 2009
Series:IMF Working Papers Working Paper No. 09/7
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Summary:The paper describes three empirical models commonly used to conduct exchange rate assessments and applies them to data for Australia and New Zealand. The baseline results using data and mediumterm projections available as of October 2008, suggest that the Australian and New Zealand dollars were broadly in line with fundamentals, but with a wide variation across models. A battery of sensitivity tests illustrate that altering the underlying assumptions can yield substantially different assessments. The results are particularly sensitive to the choice of assessment horizon, the set of economies included in the sample, medium-term forecasts, and the exchange rate reference period
Physical Description:1 Online-Ressource (33 p)
ISBN:1451871546
9781451871548

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