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Published in 2019 at "Open Economies Review"
DOI: 10.1007/s11079-019-09538-6
Abstract: This paper introduces intermediate goods trade into a two-country real business cycle model and examines its implications for real exchange rate behavior. Intermediate goods trade is shown to reduce “exchange rate disconnect” by increasing the…
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Keywords:
rate disconnect;
intermediate goods;
exchange;
real exchange ... See more keywords