Forward-looking behavior on the part of the monetary authority leads least squares estimates to understate the true growth consequences of monetary policy interventions. We present instrumental variables estimates of the impact of interest rates on real output growth for several European...

Forward-looking behavior on the part of the monetary authority leads least squares estimates to understate the true growth consequences of monetary policy interventions. We present instrumental variables estimates of the impact of interest rates on real output growth for several European...

Intro -- Trade Costs and Real Exchange Rate Volatility: The Role of Ricardian Comparative Advantage -- Contents -- I. INTRODUCTION -- II. MULTI-COUNTRY MODEL -- III. EXAMPLE -- IV. EMPIRICAL EVIDENCE -- V. CONCLUSION -- APPENDIX MULTI-COUNTRY REAL EXCHANGE RATE VOLATILITY -- REFERENCES.

This paper examines the impact of trade costs on real exchange rate volatility. We incorporate a multi-country Ricardian model of trade, based on the work of Eaton and Kortum (2002), into a macroeconomic model to show how bilateral real exchange rate volatility depends on relative technological...

Forward-looking behavior on the part of the monetary authority leads least squares estimates to understate the true growth consequences of monetary policy interventions. We present instrumental variables estimates of the impact of interest rates on real output growth for several European...