Real exchange rate dynamics in sticky wage models

Mario Crucini (), Mototsugu Shintani and Takayuki Tsuruga

Economics Letters, 2014, vol. 123, issue 2, 160-163

Abstract: We investigate the role of sticky wages in accounting for real exchange rate dynamics. Unlike the sticky price economy, government spending shocks play a more important role than technology shocks in explaining the hump-shaped impulse responses of real exchange rates.

Keywords: PPP puzzle; Real exchange rate persistence; Sticky prices (search for similar items in EconPapers)
JEL-codes: E31 F31 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:123:y:2014:i:2:p:160-163

DOI: 10.1016/j.econlet.2014.02.003

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