Two-country Model and Foreign Exchange Dynamics

Talmain, Gabriel (2017): Two-country Model and Foreign Exchange Dynamics.

Abstract

We establish the nature of the dynamics of the exchange rate in a two country model with heterogenous firms a la Abadir and Talmain (2002).

• Item Type: MPRA Paper
• Language: English
• Keywords: General Equilibrium, Exchange Rate Models, Exchange Rate Dynamics.
• Subjects: F - International Economics > F3 - International Finance > F31 - Foreign Exchange; G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets

References

Abadir, Karim M., and Gabriel Talmain, 2002, Aggregation, persistence and volatility in a macro model, Review of Economic Studies 69, 749-779. Cook, D. and M.B. Devereux, 2016, Exchange rate flexibility under the zero lower bound, Journal of International Economics 101, 52-69. Granger, C.W.J., 1981, Some properties of time series data and their use in econometric model specification, Journal of Econometrics 16, 121-130.