Thoenissen, Christoph - Centre for Dynamic Macroeconomic Analysis, University … - 2008
counter-cyclical in the data.
Backus et al (1995) point out that the relative volatility of the terms of trade, and
by … counter-cyclical trade
balance. For this calibration, the terms of trade/ real exchange rate also displays realistic
levels of …, GDP is more highly correlated across countries than is consumption, net trade is
counter-cyclical and the real exchange …