Crucini, Mario J.; Shintani, Motosugu; Tsuruga, Takayuki - 2010
"We introduce the real exchange rate volatility curve as a useful device to understand the role of price stickiness in … accounting for deviations from the Law of One Price at the sector level. In the presence of both nominal and real shocks, the … theory predicts that the real exchange rate volatility curve is a U-shaped function of the degree of price stickiness. Using …