Corsetti, Giancarlo; Dedola, Luca; Viani, Francesca - 2012
We decompose the correlation between relative consumption and the real exchange rate into its dynamic components at …-sharing, in most OECD countries the dynamic correlation tends to be quite negative, and signifi cantly so, at frequencies lower …. Theoretically, we show that the dynamic correlation over different frequencies predicted by standard open-economy models is the sum …