Similar Search Results

Euro- US Real Exchange Rate Dynamics: How Far Can We Push Equilibrium Models?

Dogan, Aydan - School of Economics, University of Kent - 2014

This paper re-assesses the problem of general equilibrium models in matching the behaviour of real exchange rate. We do so by developing a two country general equilibrium model with non-traded goods, home bias, incomplete markets and partial degrees of pass through as well as nominal rigidities...

Persistent link: https://www.econbiz.de/10010939045

Real Exchange Rates and Sectoral Productivity in the Eurozone

Berka, Martin; Devereux, Michael B.; Engel, Charles - Crawford School of Public Policy, Australian National … - 2014

We investigate the link between real exchange rates and sectoral total factor productivity measures for countries in … previous studies that have found little relationship between productivity levels and the real exchange rate among high …

Persistent link: https://www.econbiz.de/10010939113

Revisiting the importance of non-tradable goods' prices in cyclical real exchange rate fluctuations

Bache, Ida Wolden; Næss, Kjersti; Sveen, Tommy - Norges Bank - 2009

In an influential paper Engel (1999. Accounting for U.S. Real Exchange Rate Changes, Journal of Political Economy 107, 507-538) argues that essentially all the flctuations in the real exchange rate can be attributed to fluctuations in the relative price of traded goods, and that only a small...

Persistent link: https://www.econbiz.de/10004990413

Identifying Determinants of Germany's International Price Competitiveness: A Structural VAR Approach

Meurers, Martin - Economics Department, Organisation de Coopération et … - 2006

The paper employs a structural vector auto-regression (SVAR) along the lines of Blanchard and Quah (1989) and Clarida and Gali (1994) to identify the sources of changes in German international price competitiveness over the past 30 years. This leads to a separation of the driving forces of the...

Persistent link: https://www.econbiz.de/10005045622

Sectoral Productivity and Real Exchange Rate Appreciation: Much Ado about Nothing?

Flek, Vladislav; Markova, Lenka; Podpiera, Jiri - Česká Národní Banka - 2002

sectoral productivity. Subsequently, we calculate the cross-country CPIinflation differentials implied by sectorally unbalanced … productivity growth, taking into account country-specific weights of non-tradables in consumption (value added) and assuming there … are no adjustments in nominal exchange rates. We find that sectoral productivity developments have a statistically …

Persistent link: https://www.econbiz.de/10005094104

The Transfer Problem Revisited: Net Foreign Assets and Real Exchange Rates

Lane, Philip R.; Milesi-Ferretti, Gian Maria - C.E.P.R. Discussion Papers - 2000

The relationship between international payments and the real exchange rate - the ‘transfer problem’ - is one of the classic questions in international economics. In this paper we use cross-country data on real exchange rates and a newly constructed data set on countries’ net external...

Persistent link: https://www.econbiz.de/10005067388

Bilaterial equilibrium exchange rates of EU accession countries against the euro

Rahn, Jörg - Siirtymätalouksien tutkimuslaitos, Suomen Pankki - 2003

We apply BEER and PEER approaches to calculate real equilibrium exchange rates for five EU accession countries in central and east Europe. Bilateral nominal equilibrium exchange rates against the euro are obtained through algebraic transformation of the results. Panel cointegration techniques...

Persistent link: https://www.econbiz.de/10005648615

Optimal Monetary Policy and the Sources of Local-Currency Price Stability

Corsetti, Giancarlo; Dedola, Luca; Leduc, Sylvain - C.E.P.R. Discussion Papers - 2007

We analyze the policy trade-offs generated by local currency price stability of imports in economies where upstream producers strategically interact with downstream firms selling the final goods to consumers. We study the effects of staggered price setting at the downstream level on the optimal...

Persistent link: https://www.econbiz.de/10005661514

International Business Cycles: The Quantitative Role of Transportation Costs

Mazzenga, Elisabetta; Ravn, Morten O - C.E.P.R. Discussion Papers - 2002

We evaluate the quantitative effects of introducing costs of transporation into an international trade model. We model these costs through the introduction of international transportation services sector. Costs of transportation have substantial long-run effects on welfare and may impact on the...

Persistent link: https://www.econbiz.de/10005661803

The Purchasing Power Parity Debate

Taylor, Alan M.; Taylor, Mark P - C.E.P.R. Discussion Papers - 2004

Originally propounded by the 16th-century scholars of the University of Salamanca, the concept of purchasing power parity (PPP) was revived in the interwar period in the context of the debate concerning the appropriate level at which to re-establish international exchange rate parities. Broadly...

Persistent link: https://www.econbiz.de/10005662378