Economics, Econometrics and Finance
4 years ago

Study reveals impact of net foreign assets on real exchange rates

SSRN Electronic Journal
The Transfer Problem Revisited: Net Foreign Assets and Real Exchange Rates
Gian Maria Milesi-Ferretti, Philip R. Lane

Paper Summary

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The article explores the relationship between a country's foreign assets and its exchange rate. The researchers found that changes in a country's net foreign assets can impact its real exchange rate.