Can a real business cycle model without price and wage stickiness explain UK real exchange rate behaviour?

David Meenagh, A. Patrick Minford, Eric Nowell and Prakriti Sofat

Journal of International Money and Finance, 2010, vol. 29, issue 6, 1131-1150

Abstract: This paper establishes the ability of a Real Business Cycle model to account for UK real exchange rate behaviour. The model is tested by the method of indirect inference, bootstrapping the errors to generate 95% confidence limits for a time-series representation of the real exchange rate, as well as for various key data moments. The results suggest RBC models can explain real exchange rate movements.

Keywords: Real; exchange; rate; Productivity; Real; business; cycle; Bootstrap; Indirect; inference (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0261-5606(10)00032-X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Can a Real Business Cycle Model without price and wage stickiness explain UK real exchange rate behaviour? (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:29:y:2010:i:6:p:1131-1150

Access Statistics for this article

Journal of International Money and Finance is currently edited by J. R. Lothian

More articles in Journal of International Money and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().