Article ID Journal Published Year Pages File Type
964129 Journal of International Money and Finance 2011 20 Pages PDF
Abstract
► We study the relationship between labor supply and real exchange rate dynamics. ► We confirm the empirical evidence suggesting the importance of this relationship. ► To some extent it depends on the underlying causes of the exchange rate dynamics. ► Numerical simulations confirm the importance of this mechanism. ► It helps explain exchange rate behavior of LDCs with inflexible labor markets.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Real exchange rate dynamics: The role of elastic labor supply
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