Conventional and Unconventional Approaches to Exchange Rate Modeling and Assessment
---- Acknowledgements -----
We thank Ken West, Paul De Grauwe, Nelson Mark, Helene Rey, and the participants at a Federal Reserve Board seminar, the ECB-Bank of Canada workshop “Exchange Rate Determinants and Economic Impacts” and the HKIMR conference on “International Financial Markets and the Macroeconomy” for helpful comments. We also thank Gian Maria Milesi-Ferretti for providing data on foreign assets and liabilities, and acknowledge the financial support of the European Union Center at the University of Michigan. The views contained in the paper are solely those of the authors and do not necessarily represent those of the institutions the authors are associated with, the ECB, the Bank of Canada or the HKIMR.