Research Discussion Paper – RDP 8610 Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency



I am grateful to Ray Ball, Bill Branson, John Campbell, Jeffrey Carmichael, Russell Cooper, Peter Hartley, Peter Kenen, Dilip Madan, John Piggott, Jeff Sheen and Carl Walsh for helpful discussions. The views expressed herein and any remaining errors are my own and should not be attributed to any of the above or to ray employer. [*]