Reply to the comment Currency in circulation, the cash changeover and the Euro-Dollar exchange rate : by Franz Seitz and Ulrich Bindseil to CESifo working paper 493, May 2001, Why has the Euro been falling?

The paper by Seitz and Bindseil is a comment on our CESifo Working Paper (see above)on the determinants of the euro exchange rate.We welcome the publication of this comment in the ifo Studien as a matter of principle in a truly academic debate,but we do not believe that the authors have made a relevant contribution.We answer points made by the authors (in italics)one by one.