The Current Account and the Real Exchange Rate: A Structural VAR Analysis of Major Currencies

Jaewoo Lee and Menzie Chinn

Working Papers from California Irvine - School of Social Sciences

Abstract: A sticky-price model is used to motivate a structural VAR analysis of the current account and the real exchange rate for seven major industrialized countries (the US, Canada, the UK, Japan, Germany, France, and Italy). The analysis is distinguished from previous work in that it adopts minimal assumptions for identification. The empirical results are consistent with the theoretical model, as well as the sticky price intertemporal model of Obstfeld and Rogoff (1995).

Keywords: EXCHANGE RATE; PRODUCTIVITY; TRADE (search for similar items in EconPapers)
JEL-codes: F31 F41 (search for similar items in EconPapers)
Pages: 20 pages
Date: 1998
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Citations: View citations in EconPapers (49)

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Working Paper: The Current Account and the Real Exchange Rate: A Structural VAR Analysis of Major Currencies (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:calirv:97-98-17

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