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This paper shows that there is substantial comovement between prices of primary commodities such as oil, aluminum, maize, or copper and real exchange rates between developed economies such as Germany, Japan, and the United Kingdom against the US dollar. The production of commodities is then...
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Recent advances in testing for the validity of Purchasing Power Parity (PPP) focus on the time series properties of real exchange rates in panel frameworks. One weakness of such tests, however, is that they fail to inform the researcher as to which cross-section units are stationary. As a...
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estimation is based on a commonly used economic approach, but with a wider and more up-to-date coverage of data and a more …
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degrees of price stickiness then relatively more sticky goods tend to have relatively more persistent and volatile good … theory for persistence have some modest support: in the data, the stickier is the price of a good the more persistent is its … theory for volatiity fare less well: in the data, the stickier is the price of a good the smaller is its conditional variance …
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