EstimatingConsistentFundamentalEquilibriumExchange.PDFVIP

Working Paper S e r i e s W P 0 8 - 6 J U L Y 2 0 0 8 Estimating Consistent Fundamental Equilibrium Exchange Rates William R. Cline Abstract This paper sets forth a new methodology for obtaining a consistent set of exchange rate realignments needed to accomplish international adjustment in current account imbalances to reach fundamental equilibrium exchange rates (FEERs). The approach is named the symmetric matr