A central puzzle in international finance is that real exchange rates are volatile and, in stark contradiction to effcient risk-sharing, negatively correlated with cross-country consumption ratios. This paper shows that incomplete asset markets and a low price elasticity of tradables can account...

Three hundred representatives from social and economic interest groups in the ACP countries and the European Union gathered for a meeting at the European Economic and Social Committee in Brussels on 4, 5 and 6 March 2008.