Bergin, Paul R.; Glick, Reuven; Wu, Jyh-Lin - Federal Reserve Bank of San Francisco - 2012
Long half-lives of real exchange rates are often used as evidence against monetary sticky price models. In this study we show how exchange rate regimes alter the long-run dynamics and half-life of the real exchange rate, and we recast the classic defense of such models by Mussa (1986) from an...
