Kim, Soyoung; Roubini, Nouriel - Society for Economic Dynamics - SED - 2004
the current account and the real exchange rate mostly for the flexible exchange rate regime period. Based on VAR models, â … deficit shock) improves the current account and depreciates the real exchange rate for the flexible exchange rate regime … exchange rate depreciation (as opposed to the price level changes) is mainly responsible for the real exchange rate …