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A central puzzle in international finance is that real exchange rates are volatile and, in stark contradiction to effcient risk-sharing, negatively correlated with cross-country consumption ratios. This paper shows that incomplete asset markets and a low price elasticity of tradables can account...
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three main changes associated with Turkish membership: (i) accession to the internal European Market; (ii) institutional … result of accession to the internal market and free movement of labour. If Turkey would succeed in reforming its domestic …
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