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The paper addresses the question on what is the typical time horizon over which a full transmission of movements in the real exchange rate into real economy takes place. To this end, we base our analysis on the mixed-frequency small-scale dynamic factor model of Siliverstovs (2012) fitted to the...
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Switzerland starting in 1852. We use a time-varying parameter vector autoregressive model to estimate long-term trends in nominal … decline in the level of inflation. Comparing Switzerland with the rest of the world, we show that while Swiss real interest …
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