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A puzzle in international macroeconomics is that observed real exchange rates are highly volatile. Standard international real business cycle (IRBC) models cannot reproduce this fact. We show that TFP processes for the U.S. and the "rest of the world," is characterized by a vector error...
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to increase users' participation by setting prices at both sides of the market such that the total price is below …
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This paper uses a two-sector model to estimate the relationship between prices, money, and the exchange rate in … monetary aggregates, domestic prices, real income, and foreign interest rates. In addition, the error-correction model shows …
Persistent link: https://www.econbiz.de/10005825934
-through to prices, and interest rate policy following, rather than leading, financial market developments. Our estimated monetary …
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The paper develops a simple three-sector model of a developing country with nominal wage rigidity, in which one sector is thought of as the primary sector and the other two are sectors in which the country can diversify. The paper then analyzes the relationship between the market structure of...
Persistent link: https://www.econbiz.de/10005825986
factors argued to explain the differences in the trends in core inflation and relative prices in the United Kingdom, the Euro …
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Why do prices in Spain's regions fail to converge? The prime suspects for this puzzling result are differences in … illustrate the effect of barriers on prices. A unique data set-derived from an extensive analysis of competition policies in … Spain- provides evidence that barriers to entry increase regional prices. The evidence also suggests that, consistent with …
Persistent link: https://www.econbiz.de/10005826506