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Persistence in Law-of-One-Price Deviations: Evidence from Micro-data
(Vanderbilt University, 2006)
We study the dynamics of good-by-good real exchange rates using a micro-panel of 270 goods prices drawn from major cities in 63 countries and 258 goods prices drawn from 13 major U.S. cities. We find the half-life of ...
Do Sticky Prices Increase Real Exchange Rate Volatility at the Sector Level?
(Vanderbilt University, 2011)
We introduce the real exchange rate volatility curve as a useful device to understand the relationship between price stickiness and the fluctuations in Law of One Price deviations. In the presence of both nominal and real ...