Can producer currency pricing models generate volatile real exchange rates?

Article English OPEN
Povoledo, L.;
(2012)
  • Publisher: Elsevier

If the elasticities of substitution between traded and nontraded and between Home and Foreign traded goods are sufficiently low, then the real exchange rate generated by a model with full producer currency pricing is as volatile as in the data.
  • References (8)

    Benigno, P., 2009. Price Stability with Imperfect Financial Integration. Journal

    of Money, Credit and Banking 41, 121-149. Betts, C. M., Kehoe T. J., 2006. U.S. real exchange rate fluctuations and

    relative price fluctuations. Journal of Monetary Economics 53, 1297-1326. Calvo, G. A., 1983. Staggered Prices in a Utility-Maximizing Framework.

    Journal of Monetary Economics 12, 383-398. Chari, V. V., Kehoe P. J., McGrattan E. R., 2002. Can Sticky Price Models

    Studies 69, 533-63. Corsetti, G., Dedola L., Leduc S., 2008. High Exchange-Rate Volatility and

    Low Pass-Through. Journal of Monetary Economics 55, 1113-1128. Obstfeld, M., Rogoff K., 2005. Global Current Account Imbalances and

    Studies Program, The Brookings Institution, vol. 36(1), 67-146. Obstfeld, M., Rogoff K., 1995. Exchange Rate Dynamics Redux. Journal of

    Political Economy 103, 624-660. Povoledo, L., 2012. A Note on The Volatility of the Tradeable and Non-

  • Metrics
    0
    views in OpenAIRE
    0
    views in local repository
    33
    downloads in local repository

    The information is available from the following content providers:

    FromNumber Of ViewsNumber Of Downloads
    UWE Research Repository - IRUS-UK 0 33
Share - Bookmark