Bergman, Michael; Cheung, Yin-Wong; Lai, Kon S. - Nationalekonomiska Institutionen, Ekonomihögskolan - 2000
This study evaluates the individual roles of monetary and productivity shocks in real exchange rate fluctuations under the current float. Using a cointegration model of exchange rates and relative prices, the innovations are decomposed into transitory and common-trend parts. Both transitory and...