economic theory. In order to detect this pattern, the "gestalt" of exchange rate fluctuations is carefully explored. It is …

This paper assesses the role of trade patterns in shaping the volatility of the effective exchange rate under two …

in consumption is important to duplicate the exchange rate volatility and exchange rate disconnect documented in the data … volatility while leaving the volatility of real macroeconomic variables, such as GDP, almost untouched. The model predicts the … volatility of the real exchange rate relative to that of GDP increases with the extent of home bias. This relation is strongly …