Arbeitspapier
Can a Real Business Cycle Model without price and wage stickiness explain UK real exchange rate behaviour?
This paper establishes the ability of a Real Business Cycle model to account for real exchange rate behaviour, using UK data. We show that a productivity simulation is capable of explaining initial real appreciation with subsequent depreciation to a lower steady state. The model is tested by the method of indirect inference, bootstrapping the errors to generate 95% confidence limits for a time-series representation of the real exchange rate, as well as for various key data moments. The results suggest RBC models can explain real exchange rate movements.
- Language
-
Englisch
- Bibliographic citation
-
Series: Cardiff Economics Working Papers ; No. E2005/2
- Classification
-
Wirtschaft
Business Fluctuations; Cycles
Foreign Exchange
Open Economy Macroeconomics
- Subject
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Real Exchange Rate
Productivity
Real Business Cycle
Bootstrap
Indirect Inference
- Event
-
Geistige Schöpfung
- (who)
-
Meenagh, David
Minford, Patrick
Nowell, Eric
Sofat, Prakriti
- Event
-
Veröffentlichung
- (who)
-
Cardiff University, Cardiff Business School
- (where)
-
Cardiff
- (when)
-
2005
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Meenagh, David
- Minford, Patrick
- Nowell, Eric
- Sofat, Prakriti
- Cardiff University, Cardiff Business School
Time of origin
- 2005
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