Cavallo, Michele (contributor); Tille, Cédric (contributor) - 2006
transit of world savings through the U.S. to be converted into investment leads to sustained current
account imbalances …
dollar, the euro, and the yen, respectively. The three bilateral nominal exchange rates in our setup
are EU,E, EU,A, and EE …,A, with an increase in EU,E reflecting a nominal depreciation of the dollar
against the euro. While nominal exchange rates …