, sticky-price models. Our analytical and quantitative results show that the source of interest rate persistence - policy …, these models fail to generate high real exchange rate persistence in response to monetary shocks, as policy inertia hampers …, increasing policy inertia may decrease real exchange rate persistence. …

, sticky-price models. Our analytical and quantitative results show that the source of interest rate persistence - policy …, these models fail to generate high real exchange rate persistence in response to monetary shocks, as policy inertia hampers …, increasing policy inertia may decrease real exchange rate persistence. …

, sticky-price models. Our analytical and quantitative results show that the source of interest rate persistence - policy … decrease real exchange rate persistence, hampering the ability of sticky-price models to generate persistent real exchange rate … deviations from parity. When we take the model to the data, the latter favors a policy rule with high shock persistence and low …

-product, our model provides a decomposition of this difference in persistence that allows a structural interpretation of the …

In this paper we analyze the persistence of aggregate real exchange rates (RERs) for a group of EU-15 countries by … using sectoral data. The tight relation between aggregate and sectoral persistence recently investigated by Mayoral (2008 …) allows us to decompose aggregate RER persistence into the persistence of its different subcomponents. We show that the …

In this paper we analyze the persistence of aggregate real exchange rates (RERs) for a group of EU-15 countries by … using sectoral data. The tight relation between aggregate and sectoral persistence recently investigated by Mayoral (2008 …) allows us to decompose aggregate RER persistence into the persistence of its different subcomponents. We show that the …