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 …

The main purpose of this paper is to consider the effect of real exchange rate volatility on equity investment by … volatility is an important influence on Australia's financial integration in the global economy. Analysis of the effect of real … exchange rate volatility on Australia's equity home bias is important since Australian dollar is a commodity currency. There is …