Real exchange rate convergence: The roles of price stickiness and monetary policy
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DOI: 10.1016/j.jmoneco.2018.08.007
Abstract: In many open-economy models based on Dornbusch (1976), the speed of convergence of the real exchange rate is tied to the stickiness of prices. The “purchasing power parity puzzle” concerns the empirical fact that real… read more here.
Keywords: convergence; rate; exchange rate; price stickiness ... See more keywords