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In the presence of rigid prices, movements in the exchange rate help to absorb external shocks and to reduce changes in net exports. However, they also affect firms’ competitiveness, marginal costs, and labor demand. In countries where labor market institutions hinder wage adjustment (for...
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Peru's equilibrium real exchange rate using a cointegration analysis. The results show that export commodity prices do not … have a statistically significant impact on Peru's real effective exchange rate, suggesting that the nuevo sol is not a … effectivelly insulated Peru's real exchange rate from the impact of commodity price shocks. Peru's equilibrium real exchange rate …
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Using Difference-in-Differences estimation and data from the European Community Household Panel, this paper suggests that the fixed exchange-rate policy adopted by Italy in the 1997-2000 period has reduced the real hourly wage growth of Italian full-time workers with permanent contracts, on...
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In this study spanning four decades, we explored the relationship between the Reserve Bank of India's (RBI) interventions and the validity of Purchasing Power Parity (PPP) across two distinct exchange rate regimes: the fixed exchange rate regime (1975-1993) and the managed floating regime...
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