Building upon a behavioural equilibrium exchange rate (BEER) model, estimated at a quarterly frequency since 1999 on a broad sample of 57 countries, this paper assesses whether both the size and persistence of real effective exchange rate misalignments from the levels implied by economic...

Using significantly under-exploited data from institutional sector accounts, we assess the main drivers of both firms' and households' investment in Italy over the past two decades. We estimate a vector error correction model separately for firms and for households. Our findings support the...

Real effective exchange rate (REER) imbalances may affect economic growth by altering the allocation of labour and capital across sectors. This study assesses whether the component of inter-sectoral production factor misallocation induced by REER misalignments significantly hinders economic...