This paper investigates empirically and attempts to identify the sources of real exchange rate fluctuations since the collapse of Bretton Woods. The paper's first two sections survey and extend earlier, non-structural empirical work on this subject by Campbell and Clarida (1987), Meese and...

We analyze the implications for the dynamics of capitalaccumulation of market power and endogenous demand elasticities, in anenvironment in which the latter are affected by the number of competitorsin each industry. In equilibrium the interest rate increases as capitalaccumulates, even though...