• How successful is PPP, and its extension in the monetary model, as a measure of the equilibrium exchange rate?
• What are the determinants and dynamics of equilibrium real exchange rates?
• How can misalignments be measured, and what are their causes?
• What are the effects of specific policies upon the equilibrium exchange rate?

The answers to these questions are important to academic theorists, policymakers, international bankers and investment fund managers. This volume encompasses all of the competing views of equilibrium exchange rate...