, 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. …

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 …

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. …

, 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. …

-product, our model provides a decomposition of this difference in persistence that allows a structural interpretation of the …