Studies and factors of how to value a currency

Recently I have been studying on how to value a currency in case when the currency is mispriced by the market. The market price could be considered as the price determined by the market based on all the known information; however, there is a possibility that the market could miss out some important but minor information and cause currencies to be mis-priced.

I have read several books on the monetary police, limited to my sources, I have found some of the studies have focused on how to regulate or reform the current international monetary system since the fall of Bretton Woods and some focus on the history about how the modern monetary is formed. Moreover, the field of monetary policies has attracted much attention due to the current global economic environment. In addition, some researches and papers are written in other languages apart from English, especially when studying economies like the Russian economy.

Though the focus of some of the researches is relatively different from my topic, many of their details are inspiring. The ratios of government deficits to their economy sizes are very important key factors determining countries' credibilities, and the imbalance of trade between two countries causes the change in the exchange rate between the two countries. However, there is one issue about the imbalance of trade that as the official data are only monthly released, we may not be able to have enough data to form a very convincing sample to study the correlation between the imbalance of the trade and the exchange rate changes. The government deficits may have the same issue.

Moreover, when we estimate the model, we have to use time series as many of these factors can influence the exchange rates and the values of currencies over time instead of just an immediate impact.