Berka, Martin; Devereux, Michael B.; Engel, Charles - Crawford School of Public Policy, Australian National … - 2014
We investigate the link between real exchange rates and sectoral total factor productivity measures for countries in … the Eurozone. Real exchange rate patterns closely accord with an amended Balassa-Samuelson interpretation, both in cross … of real exchange rates that can be directly compared to the data. Under the assumption of a common currency, estimates …