Scholl, Almuth; Uhlig, Harald - Society for Computational Economics - SCE - 2006
€œforward discount†and the “exchange rate†puzzles. We revisit the effects of monetary policy on exchange rates by applying Uhlig … restrictions on the exchange rate to leave the key question as open as possible. Importantly, our identification scheme avoids the … “price puzzleâ€. We find that the puzzles regarding the exchange rate are still there, but that the quantitative …