El tipo de cambio propio:reformulación del concepto y estimación para el caso español
ISSN: 2341-2356
Year of publication: 1993
Issue: 5
Pages: 1-50
Type: Working paper
More publications in: Documentos de Trabajo (ICAE)
Abstract
In this paper we elaborate further the concept of own exchange rate (OER), and estimate it for the Spanish case during the 1980s. The OER is defined as a geometric weighted average of nominal exchange rates, being its rate of change contemporaneously orthogonal to the rates of change of the bilateral exchange rates. This property provides the OER with some relevance in the analysis of the exchange rate policy. It also allows us to separate the rate of change into its orthogonal constituent parts, being their analysis relevant to explain and understand the evolution of such rates of change.