Research Discussion Paper – RDP 2003-03 Australia's Medium-Run Exchange Rate: A Macroeconomic Balance Approach

Contents

• Introduction
• Modelling Macroeconomic Balance
• Empirical Estimates
• Conclusion
• Appendix A: Data
• Appendix B: Estimation Results
• Appendix C: Time Series Properties and Model Selection
• References

We wish to thank Adam Cagliarini, Guy Debelle, Rebecca Driver, David Gruen, Glenn Otto, Adrian Pagan, Ken Wallis, Tony Webber and seminar participants at the Reserve Bank of Australia and at the Australian Conference of Economists 2002 for helpful comments and discussions. All remaining errors are ours. The views expressed are those of the authors and do not necessarily reflect the views of the Reserve Bank of Australia.