Alvarez Garrido, Fernando; Atkeson, Andrew; Kehoe, … - 2000
"This paper analyzes the effects of money injections on interest rates and exchange rates in a model in which agents …' consumption, these money injections affect real interest rates and real exchange rates. We show that the model generates the … persistent exchange rates. A standard model with no fixed costs can produce none of these features"--Federal Reserve Bank of …