Lubik, Thomas A.; Surico, Paolo - Federal Reserve Bank of Richmond - 2006
the correlation of exchange rates with other macro variables are closer in line with the data. In addition, contrary to a … and persistent. Nontraded goods, both in the form of final consumption goods and as an input into the production of final … magnify the volatility of exchange rates when compared to the model without nontraded goods. Cross-country correlations and …