Vilagi.
Position | Conferences - Open economy macroeconomic models to analyze foreign exchange rates - Brief Article |
Vilagi studies how the models of the new open economy macroeconomics, which usually focus on the relationship between the nominal exchange rate and the external real exchange rate, can explain the coexistence of permanent dual inflation: diverging inflation rates for tradable and non-tradable goods and real appreciation in emerging market economies. He shows that the impact of asymmetric sectoral productivity growth on the real exchange rate depends heavily on the market structure, and that the models of new open economy...
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