We develop a tractable general equilibrium framework in which firms are large and have market power with respect to both products labor, firm's decisions affected by its ownership structure. characterize the Cournot–Walras of an economy where each firm maximizes share‐weighted average shareholder utilities—rendering independent price normalization. In one‐sector economy, if returns scale non‐in...

We propose a dynamic general equilibrium model of exchange rate determination that accounts for all major puzzles, including Meese-Rogoff, Backus-Smith, purchasing power parity, and uncovered interest parity puzzles. build on standard international real business cycle with home bias in consumption, augmented shocks the financial market result volatile near-martingale behavior rates ensure their...