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When nontraded goods prices are accounted for consistently and genuine stock data on bilateral foreign asset holdings is employed, a modified sticky-price exchange rate model by far outperforms the benchmark random walk-model in empirically forecasting the D-mark/dollar parity out of sample....
Persistent link: https://www.econbiz.de/10010265449
implications of this model using dynamic panel models for changes in foreign bank assets. We find evidence that nominal interest …
Persistent link: https://www.econbiz.de/10010260537