Ahmad, Yamin; Lo, Ming Chien; Mykhaylova, Olena - In: Economics Letters 119 (2013) 1, pp. 38-41
We investigate the time series properties of both filtered and unfiltered real exchange rate series produced by DSGE models that feature local currency pricing, home bias, nontraded goods, and incomplete markets. Detrended series produced by several specifications approach the empirically...
