We investigate the behavior of long-run U.S./U.K. real exchange rate from 1885 to 1995.

This study measures the proportion of U.S. exchange rate movements that can be accounted for by movements in relative prices of non-traded goods.

Economic agents undertake actions to protect themselves from sort-run impact of foreign exchange rate fluctuations: Nominal goods prices are set in consumer' currencies and firms hedge foreign exchange risk. A model is presented here which shows that these features of the economy can lead to...

Recent tests using long data series find evidence in favor of long-run PPP (by rejecting either the null hypothesis of unit roots in real exchange rates and relative prices.)

In this paper we use the insights of the stochastic general equilibrium growth model to help understand the effects of risk on the real, risk adjusted return to capital, capital flows, exchange rate policy, and economic growth in two Pacific Basin economies, Mexico and Indonesia, over the period...

This study measures the proportion of U.S. exchange rate movements that can be accounted for by movements in relative prices of non-traded goods.