Exchange rate dynamics, asset market structure and the role of the ...
Exchange rate dynamics, asset market structure and the role of the ...
Exchange rate dynamics, asset market structure and the role of the ...
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
3<br />
2.5<br />
2<br />
1.5<br />
1<br />
v = 0.98<br />
v = 0.88<br />
v = 0.78<br />
v = 0.68<br />
v = 0.58<br />
v = 0.51<br />
0.5<br />
0<br />
0 0.2 0.4 0.6 0.8 1<br />
θ<br />
Figure 3 The relative volatility <strong>of</strong> <strong>the</strong> terms <strong>of</strong> trade for different values <strong>of</strong> consumption home-bias<br />
<strong>and</strong> <strong>the</strong> elasticity <strong>of</strong> substitution between home <strong>and</strong> foreign-produced goods.
Change language