Coakley, Jerry; Fuertes, Ana-Maria; Wood, Andrew - In: International Journal of Finance & Economics 9 (2004) 3, pp. 201-218
Empirical studies have had difficulty in establishing the long-run relationship between real exchange rates and real yield differentials predicted by sticky price exchange rate models. We revisit this issue in a nonstationary panel regression framework. This facilitates estimation of a long-run...