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the United States, Germany and Japan is not inconsistent with exchange rate volatility implied by consumption …
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the United States, Germany and Japan is not inconsistent with exchange rate volatility implied by consumption …
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Models of risk-sharing predict that relative consumption growth rates across locations should be positively related to real exchange rate growth rates across the same areas. We investigate this hypothesis using a new multi-country and multi-regional data set. Within countries, we find evidence...
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