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Burstein, Ariel T. - 2013

We survey the recent empirical and theoretical developments in the literature on the relation between prices and exchange rates. After updating some of the major findings in the empirical literature we present a simple framework to interpret this evidence. We review theoretical models that...

Persistent link: https://www.econbiz.de/10013086292

The Price Impact of Joining a Currency Union : Evidence from Latvia

Cavallo, Alberto - 2014

Does membership in a currency union matter for a country's international relative prices? The answer to this question is critical for thinking about the implications of joining (or exiting) a common currency area. This paper is the first to use high-frequency good-level data to provide evidence...

Persistent link: https://www.econbiz.de/10013052497

Mexico's Integration into NAFTA Markets : A View from Sectoral Real Exchange Rates and Transaction Costs

Juvenal, Luciana - 2008

A self-exciting threshold autoregressive model is used to measure transaction costs that may explain relative price differentials and nonlinearities in the behavior of sectoral real exchange rates across Mexico, Canada and the U.S. Interpreting price threshold bands as transactions costs, we...

Persistent link: https://www.econbiz.de/10014409023

Growth, Nontradables, and Price Convergence in the Baltics

Richards, Anthony J. - 1995

This paper reviews the recent real exchange rate appreciation observed in the three Baltic countries. Until now, this phenomenon may be viewed primarily as a consequence of the undervalued real exchange rates of the new currencies. Looking ahead, a tendency for continued real appreciation is to...

Persistent link: https://www.econbiz.de/10014396073

Real Exchange Rates and Commodity Prices

Dupont, Dominique Yves - 1996

multi-country model, with world market clearing, which incorporates speculative and non-speculative demands for inventories …

Persistent link: https://www.econbiz.de/10014398636

Pricing to Market and the Real Exchange Rate

Faruqee, Hamid - 1995

This paper investigates the consequences of pricing to market for exchange rate pass-through and real exchange rate … dynamics across different patterns of trade under market segmentation. Under two-way, intraindustry trade--where home prices … destination-specific adjustment compared to intersectoral trade. With both trade patterns, pricing-to-market behavior intensifies …

Persistent link: https://www.econbiz.de/10014398714

Monetary policy : prosper-thy-neighbour and beggar-thyself?

Michaelis, Jochen - In: Kredit und Kapital 37 (2004) 1, pp. 1-30

Im Rahmen eines Zwei-Länder-Modells à la Obstfeld/ Rogoff werden die Wohlfahrtseffekte der Geldpolitik untersucht, wobei unvollständig kompetitive Güter und Arbeitsmärkte sowie Monopolmacht im internationalen Güterhandel unterstellt werden. Die Hauptresultate sind: (1) Eine expansive...

Persistent link: https://www.econbiz.de/10015105535

Tradability and sectoral productivity differences across countries

Inklaar, Robert; Marapin, Ryan; Gräler, Kaira - 2023

Persistent link: https://www.econbiz.de/10014377740

"The Bigger They are, the Harder They Fall" : How Price Differences Across U.S. Cities are Arbitraged

O'Connell, Paul G. J.; Wei, Shang-jin - 2021

Recent empirical work has made headway in exploring the non-linear dynamics of deviations from the law of one price and" purchasing power parity that are apt to arise from transaction costs. However, there are two important facets of this work that need improvement. First, the choice of...

Persistent link: https://www.econbiz.de/10013246270

A behavioral explanation for the puzzling persistence of the aggregate real exchange rate

Crucini, Mario J.; Shintani, Mototsugu; Tsuruga, Takayuki - 2021

At the aggregate level, the evidence that deviations from purchasing power parity (PPP) are too persistent to be explained solely by nominal rigidities has long been a puzzle (Rogoff, 1996). Another puzzle from the micro price evidence of the law of one price (LOP), which is the basic building...

Persistent link: https://www.econbiz.de/10013233792