This paper investigates the relationship between exchange rate pass-through and exchange rate appreciations/depreciations and inflation by estimating nonlinear time series models. Motivated by theoretical and empirical results in the literature, the paper proposes new econometric models that can...

Using four decades of data, we provide novel evidence that the increasing interstate synchronization of house price growth leads to higher business cycle alignment across U.S. states. The relation is stronger between states with similar banking development and in non-tradable sectors, and is...

Investors are known to exhibit home (local) bias even when they invest in their domestic markets. Since home bias is symptomatic of market segmentation, the ‘home bias at home' phenomenon raises an important question: How well integrated are domestic financial markets? The answer for this...