Luo, Robin; Visaltanachoti, Nuttawat - In: Economic Modelling 27 (2010) 1, pp. 143-151
This paper develops a continuous-time two-country dynamic equilibrium model, in which the real exchange rates, asset prices, and terms of trade are jointly determined in the presence of nontradable goods. The model determines the relation between the financial markets and real goods markets in...