This paper proposes an equilibrium theory of nominal exchange rates, which offers a new perspective on various issues … features of this theory are that the nominal exchange rate is determined in international financial markets, that the risk … from the nominal exchange rate. In terms of policy, this novel theory implies that a country with an exchange rate peg and …

interdependencies between the terms of trade and economic growth are offered: the home market effect and the productivity shock effect …

Macroeconomic and sector-specific shocks exert differential effects on investment in disaggregate sectoral data. The … monotonically. A calibrated model of investment with convex capital adjustment costs and rational inattention explains these … features of the data. The model matches the empirical responses of sectoral investment because learning about shocks generates …

-August 2020, the other from the ECB reporting average monthly values over the period January 1900-August 2020. The estimation …

, we show that more trust in a relationship is associated with higher idiosyncratic investment by suppliers and better part … relationships involving higher trust, buyers are able to induce higher investment and more intense competition among suppliers - but …

residuals of the policy rule equation at these shock dates accordingly. In spite of its utmost agnostic nature, this approach …

strategy exploits the heterogeneous impact of the shock on importers. The results indicate that this relatively minor, non …-localized shock had a non-trivial economic impact on exposed firms and propagated downstream through affected suppliers. Additional … empirical tests, motivated by a simple theory, demonstrate that low-liquidity firms amplified its transmission …