This paper considers two important sources of relative price changes in an open economy: the terms of trade and the real exchange rate movements. The paper examines the effects on real output of the terms of trade and the real exchange rate movements in Argentina, between 1977 and 1998, and...

This paper shows the effects of uncertainty of economic growth and inflation on average rates of output growth and inflation, using quarterly data of Argentina, during the last three decades. The paper employs a GARCH-M model (VARMA model) that permits to test diagonality and symmetry...

In this paper, we estimate a simple version of an intertemporal current account model. This simple model utilizes an econometric approach developed by Campbell and Campbell and Shiller for a closed economy (the permanent income hypothesis of consumption under rational expectations) to test a...