Belloc, Marianna; Federici, Daniela - In: Journal of International Money and Finance 29 (2010) 2, pp. 315-335
This paper develops a NATREX (NATural Real EXchange rate) model for two large economies, the Eurozone and the United States, which are fully specified and allowed to interact. The theoretical framework, grounded on dynamic disequilibrium modelling approach in continuous time, provides the basis...