proposing a theory-based index of exchange market pressure within the euro area. We argue that the euro area entails an inherent …

theory-based index of exchange market pressure within the euro area. We argue that the euro area entails an inherent policy …

aim of uncovering a single structural parameter, but theory suggests it could differ depending on the shock that drives … exports relative to the response of the exchange rate, conditional on each shock. Our findings suggest that this relationship … differs greatly from one shock to another, where domestic shocks generate a much weaker relationship than global shocks. We …