In this paper we provide new insights on the dynamics between monetary policy shocks and real exchange rates in small open economies using a time-varying structural vector autoregression model with stochastic volatility. Identification is achieved using a combination of short-run and long-run...

In this paper we provide new insights on the dynamics between monetary policy shocks and realexchange rates in small open economies using a time-varying structural vector autoregressionmodel with stochastic volatility. Identification is achieved using a combination of short-runand long-run...