Alquist, Ron; Chinn, Menzie D. - In: International Journal of Finance & Economics 13 (2008) 1, pp. 2-13
We examine the relative predictive power of the sticky price monetary model, uncovered interest parity, and a transformation of net exports and net foreign assets. In addition to bringing Gourinchas and Rey's new approach and more recent data to bear, we implement the Clark-West procedure for...