The 1998 Annual Capital Expenditure Survey (ACES) provides information on disaggregate investment across a wide range …

The 1998 Annual Capital Expenditure Survey (ACES) provides information on disaggregate investment across a wide range …

The standard argument for abstracting from capital accumulation in sticky-price macro models is based on their short …-run focus: over this horizon, capital does not move much. This argument is more problematic in the context of real exchange rate … (RER) dynamics, which are very persistent. In this paper we study RER dynamics in sticky-price models with capital …