Benigno, Gianluca and Thoenissen, Christoph (2008) Consumption and real exchange rates with incomplete markets and non-traded goods. Journal of International Money and Finance, 27 (6). pp. 926-948. ISSN 0261-5606
Full text not available from this repository.Abstract
This paper addresses the consumption–real exchange rate anomaly. International real business cycle models based on complete financial markets predict a unitary correlation between the real exchange rate and the ratio of home to foreign consumption when subjected to supply-side shocks. In the data, this correlation is usually small and often negative. This paper shows that this anomaly can be successfully addressed by models that have an incomplete financial market structure and a non-traded as well as traded goods production sector
| Item Type: | Article |
|---|---|
| Official URL: | http://www.elsevier.com/wps/find/homepage.cws_home |
| Additional Information: | © 2008 Elsevier B.V. |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HB Economic Theory |
| JEL classification: | F - International Economics > F3 - International Finance > F31 - Foreign Exchange F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics |
| Date Deposited: | 14 Apr 2011 15:31 |
| Last Modified: | 02 Nov 2024 06:24 |
| URI: | http://eprints.lse.ac.uk/id/eprint/35643 |
Actions (login required)
 |
View Item |
