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


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.


Economic Research Department [*]

Economic Analysis Department [**]