Have we missed the business-cycle relationship?
نویسنده
چکیده
This paper investigates the link between real exchange rates and real interest differentials over the recent floating-rate period. In contrast to earlier econometric studies, we find evidence of a relationship, with the strongest link at trend and business-cycle frequencies. Because these prior studies focused on high-frequency components of the data, they found no statistical link between real exchange rates and real interest differentials.
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تاریخ انتشار 2001