We reappraise the relationship between productivity and equilibrium real exchangerates using a panel estimation … ofnon-traded, as well as traded, sector productivity shocks in exchange ratedetermination. We find evidence of significant … correlation between real exchangerates and productivity differentials in both sectors. But our finding of a significant rolefor …

This paper examines the impact of downward wage rigidity (nominal and real) onoptimal steady-state inflation. For this … andFinland). The calibrated heterogeneous agent models are then solved for differentsteady state rates of inflation to derive …