Legrenzi, Gabriella; Milas, Costas - Centre for Economic Research, School of Economics and … - 2005
Using UK data over the 1973q1-2004q1 period, we find that the dynamics of the real exchange rate, real wages and unemployment vary both with large versus small real exchange rate disequilibria and rising versus falling unemployment regimes. The short-run real exchange rate adjusts only when...
