This paper studies the dynamic structural relationship between the trade balance and the terms of trade by means of a time-scale decomposition. Our analysis is carried out using data obtained from ten developed economies; Australia, Austria, Canada, France, Italy, Japan, Norway, Switzerland, the...

In this paper I review what insights we have gained about economic and financial relationships from the use of wavelets and speculate on what further insights we may gain in the future. Wavelets are treated as a acirc;not;Slensacirc;not;? that enables the researcher to explore relationships that...