The Resource Euro-dollar real exchange rate dynamics in an estimated two-country model : what is important and what is not, prepared by Pau Rabanal and Vicente Tuesta

Euro-dollar real exchange rate dynamics in an estimated two-country model : what is important and what is not, prepared by Pau Rabanal and Vicente Tuesta

Label
Euro-dollar real exchange rate dynamics in an estimated two-country model : what is important and what is not
Title
Euro-dollar real exchange rate dynamics in an estimated two-country model
Title remainder
what is important and what is not
Statement of responsibility
prepared by Pau Rabanal and Vicente Tuesta
Creator
Contributor
Author
Subject
Language
eng
Summary
We use a Bayesian approach to estimate a standard two-country New Open Economy Macroeconomics model using data for the United States and the euro area, and we perform model comparisons to study the importance of departing from the law of one price and complete markets assumptions. Our results can be summarized as follows. First, we find that the baseline model does a good job in explaining real exchange rate volatility but at the cost of overestimating volatility in output and consumption. Second, the introduction of incomplete markets allows the model to better match the volatilities of all real variables. Third, introducing sticky prices in Local Currency Pricing improves the fit of the baseline model but does not improve the fit as much as introducing incomplete markets. Finally, we show that monetary shocks have played a minor role in explaining the behavior of the real exchange rate, while both demand and technology shocks have been important
Member of
Action
digitized
Cataloging source
E7B
Government publication
international or intergovernmental publication
Index
no index present
LC call number
HG3897
LC item number
.R33 2006eb
Literary form
non fiction
Nature of contents
  • dictionaries
  • bibliography
Series statement
IMF working paper
Series volume
WP/06/177
Label
Euro-dollar real exchange rate dynamics in an estimated two-country model : what is important and what is not, prepared by Pau Rabanal and Vicente Tuesta
Publication
Bibliography note
Includes bibliographical references
http://library.link/vocab/branchCode
  • net
Carrier category
online resource
Carrier category code
cr
Carrier MARC source
rdacarrier
Color
multicolored
Content category
text
Content type code
txt
Content type MARC source
rdacontent
Control code
ocn698585560
Dimensions
unknown
Extent
1 online resource (40 pages)
Form of item
online
Isbn
9781451987928
Media category
computer
Media MARC source
rdamedia
Media type code
c
http://library.link/vocab/recordID
.b3551453x
Reproduction note
Electronic reproduction.
Specific material designation
remote
System control number
  • (OCoLC)698585560
  • pebcs1283517663
System details
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.

Library Locations

    • Deakin University Library - Geelong Waurn Ponds CampusBorrow it
      75 Pigdons Road, Waurn Ponds, Victoria, 3216, AU
      -38.195656 144.304955
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