The surge in demand for resources over the past decade led to sharp increases in the terms of trade not just for Australia, but also for other economies with comparable resource exports such as Brazil, Canada, Chile, Russia and South Africa. Each of these economies experienced an increase in...

Lee and Chinn (2006) and Chinn and Lee (2009) decomposed current account and real exchange rate into temporary and permanent shocks and argued that a temporary shock creates the combination of a current account surplus (deficit) and real exchange rate depreciation (appreciation). This paper...

The Real Exchange Rate (RER) dynamic has been widely studied. The international literature shows that, in the period after the Bretton Woods treaties, it would follow a non-stationary process. The evidence for the Chilean economy suggests that only in the very long term it is possible to find...

This paper provides evidence of long run purchasing power parity by performing a recently developed method to test for unit roots in the presence of structural breaks. Data consist of real exchange rate series for 20 countries including developed and developing economies. Structural breaks are...

The aim of this article is to provide additional evidence on the fulfilment of the Purchasing Power Parity (PPP) hypothesis in the so-called Mediterranean countries. In order to test for the empirical validity of such a hypothesis, we have applied two types of unit root tests. The first group is...

The aim of this article is to provide additional evidence on the fulfilment of the Purchasing Power Parity (PPP) hypothesis in the so-called Mediterranean countries. In order to test for the empirical validity of such a hypothesis, we have applied two types of unit root tests. The first group is...

The aim of this article is to provide additional evidence on the fulfilment of the Purchasing Power Parity hypothesis in the so-called Mediterranean countries. In order to test for the empirical validity of such hypothesis, we have applied two types of unit root tests. The first group is due to...

This paper provides evidence of long run purchasing power parity by performing a recently developed method to test for unit roots in the presence of structural breaks. Data consist of real exchange rate series for 20 countries including developed and developing economies. Structural breaks are...

In this paper, we study the optimal mix of monetary and macroprudential policies in an estimated two-country model of the euro area. The model includes real, nominal and financial frictions, and hence both monetary and macroprudential policy can play a role. We find that the introduction of a...

The currency board (Convertibility) collapsed between December 2001 and January 2002, after almost 11 years in force. The trends leading to the meltdown continued in the following months, plunging half of the population into poverty and one third into extreme poverty. Only six months later, the...