Models that emphasize sticky prices to explain persistent real exchange rate fluctuations predict that such fluctuations should be less persistent in high inflation countries relative to low inflation countries. Cross-country regression results, in general, do not support this implication.

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Economics Letters

Khan, H.U. (2001). Price stickiness, inflation, and persistence in real exchange rate fluctuations: Cross-country results. Economics Letters, 71(2), 247–253. doi:10.1016/S0165-1765(01)00370-6