International Business Cycles and Exchange Rates

Review of International Economics

Posted: 15 Sep 1998

See all articles by Christian Zimmermann

Christian Zimmermann

Federal Reserve Bank of Saint Louis; IZA Institute of Labor Economics

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Abstract

International real business cycle models are not able to account for the high volatility of exports, imports, the trade balance and the terms of trade. By introducing exogenous exchange rate movements in addition to standard technological shocks, the model presented here comes much closer to replicating the relatively high volatility observed in the data while also improving other moments.

JEL Classification: E32, E31, F41

Suggested Citation

Zimmermann, Christian, International Business Cycles and Exchange Rates. Review of International Economics. Available at SSRN: https://ssrn.com/abstract=127588

Christian Zimmermann (Contact Author)

Federal Reserve Bank of Saint Louis ( email )

411 Locust St
Saint Louis, MO 63011
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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