This study by Koske (PhD, macroeconomics and international economics, WHU--Otto Beisheim School of Management, Germany) estimates equilibrium exchange rate paths for the euro and for the
currencies of the ten countries that gained membership to the European Economic and Monetary Union in 2004. After reviewing the theoretical concepts of equilibrium exchange rates and their
application to the currencies in question, he analyzes recent movements in the external value of the Euro and tests the validity of explanation by monetary factors and by the natural real
exchange rate (NATREX) approach. He then applies a small country version of the NATREX approach to deriving equilibrium real exchange rate paths for the accession currencies. Annotation 穢2008
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