Estimates of equilibrium exchange rates for sterling against the euro
Equilibrium exchange rates (EERs) are important in analysing possible entry into EMU. They measure the rate to which the real exchange rate (the nominal exchange rate adjusted for domestic and overseas price levels) tends over the medium to long term. The EMU study by Professor Simon Wren-Lewis Estimates of equilibrium exchange rates for sterling against the euro examines the theories and empirical evidence on economic forces that determine EERs and considers different methods of estimating EERs. It uses a new model to estimate new medium-term equilibrium rates for sterling-euro and euro-dollar equilibrium exchange rates.
Estimates of equilibrium exchange rates for sterling against the euro below is available in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.
Estimates of equilibrium exchange rates for sterling against the euro
PDF file Executive summary (84kb)
PDF file of study (361kb)