It is well known that prices respond only partially, if at all, to changes in the nominal exchange rate. Exchange-rate pass-through, quite low for consumer prices, is far for complete for international prices as well (see the survey in Goldberg and Knetter [1997]). To the extent that incomplete...

This paper estimates the effects of technology shocks in Bayesian VAR models of the United States, Japan and West Germany, imposing restrictions on the sign of impulse responses. These restrictions are motivated with explicit priors on the parameters of a dynamic general equilibrium model...

Current account crises in emerging markets are characterized by large increases in interest rates, big drops in output, and large real currency depreciations. Current models of crisis with financial frictions do not generate very large movements in these variables. Recent work has shown that the...