A self-exciting threshold autoregressive model is used to measure transaction costs that may explain relative price differentials and nonlinearities in the behavior of sectoral real exchange rates across Mexico, Canada and the U.S. Interpreting price threshold bands as transactions costs, we...

This paper analyses the adjustment mechanism in the euro area prior to the crisis. Results show that the real exchange rate adjusted to redress cyclical divergences and that after monetary unification, real exchange rate dynamics became less reactive to country-specific shocks but also less...

A fear about EMU was that in the absence of national currencies, country-specific shocks would result in greater current account divergences between member states. This paper finds that divergences across euro-area countries are smaller and have not risen relative to those across 13 other...

Until the global financial crisis of 2007-08, inflation differentials in the euro area could beexplained by a general trend towards price level convergence; that is, countries with lowerprice levels tended to have higher inflation rates than countries with higher price levels.Since then, however,...

According to Noam, “The central question for telecom — and for many other media — is how to generate the funds and invest in upgraded infrastructure, while being subject to competition”. Investment in next generation access network is needed to deliver broadband services with...

Households across Europe are struggling with a double crisis-the worst inflation shock since the World War II and a sudden correction in house prices. There is a rich literature on how housing price cycles affect consumer spending, finding mixed results with a wide range of consumption responses...