dollar shock, generalised impulse response function shocks and a global shock to risk aversion. Our results show that the way … depends crucially on the nature of the shock. This result is noteworthy given the apparent divergence in competitiveness …

We examine the response of real exchange rates to shocks in real exchange rate determinants, a monetary policy shock …, and a fiscal policy shock in 30 countries over the period 1970-2008. The country set is divided into 4 groups European … spending leads to a real appreciation over the long run. We also find that a contractionary monetary policy shock has only …

, we extend the concept of supply shocks beyond the productivity shock towards labor supply shocks. Our analysis …