Exchange Rate Models Are Not as Bad as You Think
---- Acknowledgements ----
Prepared for the NBER Macroeconomics Annual, 2007. Conference in Cambridge, Massachusetts, March 30-31, 2007. We thank Joong Shik Kang and Enrique Martinez-Garcia for very able research assistance. We thank Paolo Pesenti and participants in the Second Annual Workshop on Global Interdependence, at Trinity College, Dublin for very helpful comments. We also thank Barbara Rossi and Ken Rogoff for their helpful comments at the Macro Annual conference. Each of the authors gratefully acknowledges grants from the National Science Foundation that have supported this research. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.