The role of monetary shocks and real shocks on the current account, the terms of trade and the real exchange rate dynamics: a SVAR analysis

Yanchun Zhang

Applied Economics, 2009, vol. 41, issue 16, 2047-2063

Abstract: The article is an empirical investigation of the role of monetary shocks and real shocks on the current account, the terms of trade and the real exchange rate dynamics. Three new open economy macro-economics (NOEM) models are studied to motivate the empirical investigation. Then I apply the Blanchard-Quah decomposition to identify a SVAR model. The empirical evidence supports the NOEM model with the simplified household preference specification and with the small degree of pricing-to-market. The evidence also illustrates monetary shocks important for the real exchange rate and the terms of trade movements, but not for the current account fluctuations.

Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/00036840701721034 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:applec:v:41:y:2009:i:16:p:2047-2063

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036840701721034

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().