Add to ORKGThe flexible-price two-country monetary model is extended to include a consumption externality with habit persistence. The model is simulated using the artificial economy methodology. It successfully explains (i) the high volatility of nominal and real exchange rates, (ii) the high correlation between real and nominal rates, and (iii) the persistence of real exchange rates. It offers a neo-classical explanation for the Meese-Rogoff exchange rate forecasting puzzle
This paper attempts to provide a comprehensive overview of the recent literature on the economics of...
The objective of this paper is to investigate the effect of external habit formation on real exchang...
Exchange rate economics has achieved substantial development in the past few decades. Despite extens...
The flexible-price two-country monetary model is extended to include a consumption externality with ...
The flexible-price two-country monetary model is extended to include a consumption externality with ...
We present a simple framework in which both the exchange rates disconnect and forward bias puzzles a...
We present a simple framework in which both the exchange rates disconnect and forward bias puzzles a...
Data for the U.S. and the Euro area during the post-Bretton Woods period shows that nominal and real...
We present a simple framework in which both the exchange rates disconnect and forward bias puzzles a...
Existing empirical evidence suggests that real exchange rates exhibit hump-shaped dynamics. I show t...
In ``The Dynamic Behavior of the Real Exchange Rate in Sticky Price Models'' published in the Americ...
Daqing Luo provided excellent research assistance. Both authors would like to thank SSHRC for grants...
This paper re-examines the ability of sticky-price models to generate volatile and persistent real e...
The existing new open-economy macroeconomic literature is almost entirely developed based on the sti...
There are two key observations in international macroeconomics which pertain to output and real exc...
This paper attempts to provide a comprehensive overview of the recent literature on the economics of...
The objective of this paper is to investigate the effect of external habit formation on real exchang...
Exchange rate economics has achieved substantial development in the past few decades. Despite extens...
The flexible-price two-country monetary model is extended to include a consumption externality with ...
The flexible-price two-country monetary model is extended to include a consumption externality with ...
We present a simple framework in which both the exchange rates disconnect and forward bias puzzles a...
We present a simple framework in which both the exchange rates disconnect and forward bias puzzles a...
Data for the U.S. and the Euro area during the post-Bretton Woods period shows that nominal and real...
We present a simple framework in which both the exchange rates disconnect and forward bias puzzles a...
Existing empirical evidence suggests that real exchange rates exhibit hump-shaped dynamics. I show t...
In ``The Dynamic Behavior of the Real Exchange Rate in Sticky Price Models'' published in the Americ...
Daqing Luo provided excellent research assistance. Both authors would like to thank SSHRC for grants...
This paper re-examines the ability of sticky-price models to generate volatile and persistent real e...
The existing new open-economy macroeconomic literature is almost entirely developed based on the sti...
There are two key observations in international macroeconomics which pertain to output and real exc...
This paper attempts to provide a comprehensive overview of the recent literature on the economics of...
The objective of this paper is to investigate the effect of external habit formation on real exchang...
Exchange rate economics has achieved substantial development in the past few decades. Despite extens...