This paper adds to the empirical literature on business cycle properties across exchange rate regimes. Earlier research examined the consequences of the Bretton Woods system on international stylized facts. However, the conclusions might be biased by the oil shocks at the beginning of the...

Empirical evidence suggest that nominal shocks play a major role in explaining real exchange rate fluctuations. I thus develop a two-country monopolistic competition model with nominal impulses, adjustement costs and price discrimination. I gauge the ability of the model to solve the quantity...