Search Results for: The Real Exchange Rate In Sticky Price Models

Existing empirical evidence suggests that real exchange rates exhibit hump-shaped dynamics. I show that this is a robust fact across nine large, developed econo

Existing empirical evidence suggests that real exchange rates exhibit hump-shaped dynamics. I show that this is a robust fact across nine large, developed econo

The central puzzle in international business cycles is that real exchange rates are volatile and persistent. The most popular story for real exchange rate fluct

The data show large and persistent deviations of real exchange rates from purchasing power parity. Recent work has shown that to a large extent these movements