Mac Mullen, Marcos; Woo, Soo Kyung - 2025 - This Draft: July 2025
This paper studies the drivers of the US real exchange rate (RER), with a particular focus on its comovement with net trade (NT) flows. We consider the entire spectrum of frequencies, as the low-frequency variation accounts for 62 and 64 percent of the unconditional variance of the RER and NT,...