Research Discussion Paper – RDP 9108 Australia's Real Exchange Rate – Is it Explained by the Terms of Trade or by Real Interest Differentials?

Contents

• Introduction
• The Stylised Facts
• Methodology
• Results
• Discussion and Conclusions
• Data Appendix
• Appendix
• References

We are very grateful to Sam Ouliaris for much econometric advice and to Adrian Blundell-Wignall, Phil Lowe and Peter Tulip for helpful discussions. The views expressed in the paper are those of the authors and should not be attributed to the Reserve Bank of Australia.