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.

Additional Metadata
Keywords E31, F41, Inflation, Price stickiness, Real exchange rate
Persistent URL dx.doi.org/10.1016/S0165-1765(01)00370-6
Journal Economics Letters
Citation
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