In this article, we develop an analytical general equilibrium model of the equilibrium exchange rate. This theoretical framework allows us to identify the relevant set of variables which determinate the equilibrium exchange rate and to explore how theses variables influence the trajectory of the...

We provide a unified approach to stochastic dynamic programming with recursive utility based on an elementary application of Tarski's Fixed Point Theorem. We establish that the exclusive source of multiple values is the presence of multiple recursive utilities consistent with the given...