Hnatkovska, Viktoria; Lahiri, Amartya; Vegh, Carlos A. - In: European Economic Review 63 (2013) C, pp. 68-93
For over 30years, the empirical international finance literature has been unable to detect a clear systematic relationship between interest rates and the nominal exchange rate. We take a fresh look at the data and uncover a new stylized fact for a cross-section of countries: the relationship...