In this paper we analyze the persistence of aggregate real exchange rates (RERs) for a group of EU-15 countries by … using sectoral data. The tight relation between aggregate and sectoral persistence recently investigated by Mayoral (2008 …) allows us to decompose aggregate RER persistence into the persistence of its different subcomponents. We show that the …

It has been recently emphasized that, if individuals have heterogeneous dynamics, estimates of shock persistence based … examination of the implications of this statement on the various tools routinely employed to measure persistence is missing in the … compare the values of several measures of persistence across aggregation levels. Interestingly, we show that the average …

The persistence properties of economic time series has been a primary object of investigation in a variety of guises … since the early days of econometrics. This paper suggests investigating the persistence of processes conditioning on their … its lags maybe a useful indicator of the variation in persistence with respect to its past history. We discuss in detail …

In this paper we analyze the persistence of aggregate real exchange rates (RERs) for a group of EU-15 countries by … using sectoral data. The tight relation between aggregate and sectoral persistence recently investigated by Mayoral (2008 …) allows us to decompose aggregate RER persistence into the persistence of its different subcomponents. We show that the …

, sticky-price models. Our analytical and quantitative results show that the source of interest rate persistence – policy …, these models fail to generate high real exchange rate persistence in response to monetary shocks, as policy inertia hampers …, increasing policy inertia may decrease real exchange rate persistence. …