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What Decides the Exchange Rate? Theory – and Predictions of the Norwegian Krone against the Euro

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Figure

Figure 1.1 illustrates the development in value of the NOK as against the Euro in the period 2001-2018
Figure 6.1: Monthly observations of the exchange rate for the krone to the Euro, together with computed long-term equilibrium rates
Fig 7.1 Exchange rate 1-step forecasts for a horizon of 50 months based on      the error correction model in equation (1)
Fig 7.2 Observed and predicted rates based on RW model
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